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Banking, finance, and taxes

S&P Hikes Amazon.com Corporate Credit Ratings (AMZN)

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By Douglas A. McIntyre Published
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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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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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