ORCL - Oracle's 'spending spree' is changing its risk profile BofA cuts to underweight

Oracle's (NYSE:ORCL) decision to acquire electronic medical records company Cerner (NASDAQ:CERN) in a deal valued at more than $30 billion is changing its "risk profile," with Bank of America cutting its rating on the company's bonds and credit default swaps to underweight and buy protection. Analyst Jason Kilgariff said the all-cash deal, along with several quarters of spending between $7 billion and $8 billion buying back its stock signals that Oracle (ORCL) is willing to be rated low-BBB. "We believe an all-cash  transaction for CERN would be a significant departure from its new $76 [billion] absolute debt  target and outside of further financial policy guidance a signal that the company is  comfortable operating at the low end of the investment grade rating scale, down from Single-A just nine months ago," Kilgariff wrote in the note. He added given Oracle's (ORCL) willingness to push its leverage, its bonds should trade between

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Oracle's 'spending spree' is changing its risk profile, BofA cuts to underweight