Fitch: Oracle view positive

Fitch Ratings said it revised Oracle Corp.'s outlook to positive and affirmed its long-term issuer default rating, revolving credit facility and senior unsecured debt at A and its short-term issuer default rating and commercial paper at F1.

The agency said the ratings and outlook reflect Oracle's ample liquidity, strong customer attach and renewal rates for software maintenance despite the severity of the economic downturn, strong competitive position, size and diversity with respect to its installed software base and significant switching costs associated with mission-critical enterprise software, solid credit protection measures and established track record of integrating large software acquisitions.

Rating concerns center on Oracle's ability to successfully integrate Sun Microsystems, Inc., the company's first non-software acquisition and largest integration effort to date; it aggressive acquisition strategy; limited growth prospects in the high-end enterprise server market; and the adaptability and long-term profitability of Oracle's enterprise applications business as demand accelerates for software as a service in lieu of traditional software installations, Fitch said.

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