Banking, finance, and taxes
S&P Hikes Amazon.com Corporate Credit Ratings (AMZN)
Published:
Standard & Poor’s Ratings Services has raised its corporate credit rating on Amazon.com (NASDAQ: AMZN) to ‘BB+’ from ‘BB’. While this is still junk status, it is now just a notch under "investment grade" rated for corporate credit ratings. Amazon has also been removed from CreditWatch with positive implications that were imposed in February.
S&P raised the rating on the company’s 4.75% convertible subordinated notes due February 2009 and its 6.875% premium adjustable convertible securities to ‘BB+’ from ‘B+’ and assigned both issues a recovery rating of ‘3’. That indicates the expectation of meaningful recovery noted as a 50% to 70% in the event of default and the outlook is positive.
This reflects Amazon’s trailing 12-month growth rate of 39.4% as of March 31, as well as its ability to manage sustained growth with beneficial impact on credit measures from the recent redemption of the $500 million 4.75% convertible subordinated notes.
Jon C. Ogg
June 11, 2008
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