Fitch Ratings said Thursday that it has revised the Rating Watch for Sun Microsystems Inc.'s (JAVA) Issuer Default Rating of 'BBB-' to Positive from Evolving following the European Commission's unconditional approval of Oracle Corp.'s (ORCL) proposed acquisition of Sun.
Fitch said the Rating Watch Positive reflects its belief that Oracle will successfully consummate its acquisition of Sun since the EC represented the last significant regulatory hurdle.
The Rating Watch Positive will be resolved upon closing of the acquisition, which is anticipated to result in Fitch upgrading Sun's IDR to 'A', which is equal to Oracle, and withdraw the rating as Sun will no longer have any debt outstanding.
In the unlikely event the merger agreement is terminated, Fitch believes Sun's IDR would be downgraded by at least two notches given the significant deterioration in the company's financial performance which is primarily attributable to continued weak demand for information technology hardware amid a challenging economic environment.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.