S&P lifts Amazon

Standard & Poor's said it raised the corporate credit rating on Amazon.com to BB+ from BB and removed the rating from CreditWatch with positive implications, where they were placed on Feb. 13.

The agency also upgraded 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 a recovery rating of 3.

The outlook is positive.

S&P said the upgrade reflects the company's strong operating performance, the ability to manage sustained growth and the redemption of the $500 million 4.75% convertible subordinated notes on June 9.

Ratings reflect the risks of rapid growth and participation in the mature and highly competitive retail industry, the agency said.

The risks are somewhat tempered by the company's solid market position in online retailing, broad and deep product offering and above-average cash flow protection measures, S&P said.

For the 12 months ended March 31, pro forma total debt-to-EBITDA ratio fell to 1.1 times from 2.2 times for the same period in 2007.

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