...On Feb. 13, 2008, Standard & Poor's Ratings Services placed its ratings on Seattle, Wash.-based Amazon.com (Amazon) on CreditWatch with positive implications. This action reflects the strong results for fourth-quarter 2007 and the announcement of authorization to repurchase all of the outstanding 4.75% convertible subordinated notes and 6.875% PEACS. The outstanding principal amount was $899 million on the convertible subordinated notes and 240 million on the PEACS. Completion of this authorization would result in a substantial deleveraging of Amazon's balance sheet. We will continue to monitor the ratings as additional information becomes available. The ratings on Amazon, one of the world's largest online retailers, reflect the risks of rapid growth and participation in the mature and highly competitive retail industry. The company's solid market position in online retailing and improving cash flow protection measures temper the risks somewhat. Amazon's growth in EBITDA, coupled with declining...
