Research Update: Amazon.com Corporate Credit Rating Raised Two Notches To 'BBB' On Strong Performance

On Feb. 13, 2009, Standard&Poor's Ratings Services raised its corporate credit rating on Seattle-based Amazon.com to 'BBB' from 'BB+'. At the same time, we raised the rating on the company's unsecured debt to 'BBB-' from 'BB+'. The outlook is stable. The upgrade to an investment-grade rating reflects Amazon.com's strong brand, robust performance, and improved credit protection metrics. The company has maintained solid performance during this especially difficult retailing environment. Both top-line and EBITDA growth demonstrate this, causing us to favorably reevaluate the company's business risk and credit rating. The investment-grade ratings on Amazon.com, one of the largest e-commerce retailers, reflect the company's leading position in on-line retailing, its broad and deep merchandise offering, strong cash cushion, and above-average

...On Feb. 13, 2009, Standard & Poor's Ratings Services raised its corporate credit rating on Seattle-based Amazon.com to '###' from '##+'. At the same time, we raised the rating on the company's unsecured debt to '###-' from '##+'. The outlook is stable. The upgrade to an investment-grade rating reflects Amazon.com's strong brand, robust performance, and improved credit protection metrics. The company has maintained solid performance during this especially difficult retailing environment. Both top-line and EBITDA growth demonstrate this, causing us to favorably reevaluate the company's business risk and credit rating. The investment-grade ratings on Amazon.com, one of the largest e-commerce retailers, reflect the company's leading position in on-line retailing, its broad and deep merchandise offering, strong cash cushion, and above-average credit protection metrics. The ongoing risks of rapid growth and participation in the mature and highly competitive retail industry partially offset those...

Research Update