Amazon.com Inc. (NASDAQ: AMZN) has received yet another debt rating upgrade. Standard & Poor’s Ratings Services raised it by a full two notches and kept a positive outlook that could mean more ratings boosts are coming. The upgrade is based on the belief that the company will keep its growth and momentum going at above-market rates. The new rating is A- rather than BBB.
In mid-December we saw a ‘positive’ review for the Internet retailer. Also cited was that Amazon has reduced its debt balances considerably along with having strong sales in the holiday and maintaining a strong outlook.
S&P did throw in that the rapid growth does come with some risks and that the retail sector is highly competitive. While revenue growth is likely to remain strong, S&P did warn of margin erosion being possible.
We originally had shares down over 1% but after the market recovery shares are down 0.6% at $119.34. The stock is down from recent highs of just over $145, but the company is still up 100% from its 52-week low.
JON C. OGG
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