On Sept. 15, 2005, Standard&Poor's Ratings Services 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. These improvements are attributable to the company's strong sales, lean cost structure, and debt reduction. The ratings on Amazon reflect the risks of rapid growth and the company's participation in the intensely competitive retail industry. These risks are tempered by the company's solid market position in online retailing. Amazon
