On Oct. 23, 2003, Standard&Poor's Ratings Services revised its outlook on Amazon.com to positive from stable. The ratings, including the 'B' corporate credit rating, were affirmed. The outlook revision reflects the significant progress that Amazon.com had made in improving operating results and credit protection measures in 2003, and Standard&Poor's belief that continued gains could lead to a higher rating in the future. The ratings on Amazon reflect the risks of rapid growth in an evolving marketplace, weak levels of profitability, and a heavy debt burden. The ratings also incorporate the potential for margin pressure from intense retail competition and the soft U.S. economy. These risks are tempered by the company's solid market position in online retailing.
