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 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.