Amazon has announced an agreement to purchase Whole Foods Market Inc. in a debt-financed purchase of about $14 billion. We are placing our 'AA-' corporate credit rating on Amazon on CreditWatch with negative implications. Our preliminary view is that Amazon's leverage will approach 1.5x, but mostly likely remain below 2x. We see the purchase as a major strategic initiative for Amazon, with execution risk, but also potential significant implications for Amazon's market strategy as well as for the broader U.S. grocery market. On June 16, 2017, S&P Global Ratings placed its ratings, including the 'AA-' corporate credit rating, on Amazon.com Inc. on CreditWatch with negative implications. The CreditWatch placement reflects our expectation that Amazon's leverage will increase as a result
