Fitch gives Oracle notes A

Fitch Ratings said it assigned an A rating to Oracle Corp.'s proposed $3.25 billion offering of 10- and 30-year senior unsecured notes. The company has a long-term issuer default rating of A, revolving credit facility of A, senior unsecured debt of A, short-term issuer default rating of F1 and commercial paper rating of F1.

The proceeds will be primarily used to refinance existing debt, consisting of nearly $1 billion of commercial paper previously issued in conjunction with the maturity of $1 billion of floating-rate notes in May 2010 and pre-fund $2.25 billion of 5% senior unsecured notes due in January 2011.

The outlook is positive.

The ratings are supported by the company's ample liquidity, supported by consistent and increasing annual free cash flow in excess of $7 billion since fiscal year 2008, Fitch said.

Concerns include its ability to successfully integrate Sun, which is the company's first non-software acquisition, the agency said, and its aggressive acquisition strategy.

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