Fitch rates Oracle notes A

Fitch Ratings said it assigned an A rating to Oracle Corp.'s proposed debt offering of up to $5 billion senior unsecured notes with maturities in 2013, 2018 and 2038. Oracle has issuer default and senior unsecured debt ratings at A and short-term issuer default and commercial paper ratings at F1.

The outlook is stable.

Proceeds will be used to help fund Oracle's previously announced acquisition of BEA Systems, Inc. and for general corporate purposes.

Pro forma for the deal, Oracle's total debt-to-operating EBITDA ratio will rise to about 1.4 times from 0.7 times at Feb. 29.

Ratings reflect strong and consistent annual free cash flow, strengthened competitive position, minimal operational or customer issues resulting from significant acquisition activity and the size and diversity of Oracle's installed base, the agency said.

Concerns center on expectations that Oracle will continue to use annual free cash flow to fund acquisitions and share repurchases, Fitch said.

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