Amazon.com Ratings Raised, Short-Term Rating Affirmed, Outlook Stable, On Good Cash Flow

NEW YORK (Standard&Poor's) Sept. 15, 2005--Standard&Poor's Ratings Services said today that it raised its ratings on Internet retailer Amazon.com, including raising its corporate credit rating to 'BB-' from 'B+'. At the same time, Standard&Poor's affirmed its 'B-1' short-term rating on the company. The outlook is stable. Total debt outstanding was $1.5 billion as of June 30, 2005. "The upgrade reflects Amazon's greater cash flow generation capabilities and strengthened cash flow protection measures," said Standard&Poor's credit analyst Diane Shand. "These improvements are attributable to the company's strong sales, lean cost structure, and debt reduction." Cash flow protection measures have strengthened, primarily because of Amazon's repayment of $150 million of debt in 2004 and

...NEW YORK (Standard & Poor's) Sept. 15, 2005--Standard & Poor's Ratings Services said today that it raised its ratings on Internet retailer Amazon.com, including raising its corporate credit rating to '##-' from 'B+'. At the same time, Standard & Poor's affirmed its 'B-1' short-term rating on the company. The outlook is stable. Total debt outstanding was $1.5 billion as of June 30, 2005. "The upgrade reflects Amazon's greater cash flow generation capabilities and strengthened cash flow protection measures," said Standard & Poor's credit analyst Diane Shand. "These improvements are attributable to the company's strong sales, lean cost structure, and debt reduction." Cash flow protection measures have strengthened, primarily because of Amazon's repayment of $150 million of debt in 2004 and 200 million of its outstanding 6.875% convertible subordinated notes in 2005. The ratings on Amazon reflect the risks of rapid growth and the company's participation in the intensely competitive retail industry....

Ratings Action