Amazon plans to issue up to $ 16 billion in bonds to support its plan to buy Whole Foods supermarket.
Amazon To Issue Bonds
Moody’s Investors Service has granted the deal a rating for Baa1 and raised Amazon’s credit outlook from positive to positive. Moody’s vice president Charlie O’Shea wrote in a report that this reflects their view that despite the increase in debt, the acquisition of total food supermarket will have a positive impact on Amazon’s credit.
The Whole Foods supermarket has been trying to increase the market segment for Amazon to provide a larger scale and a key entity presence. Nearly 500 existing Whole Foods supermarket stores can be used to expand food delivery as well as for any type of online order provide the receiving site.
O’Shea said the investment grade rating reflects the strength of the Amazon cloud business, Amazon’s network services accounted for most of the company’s operating income. The company also has a lot of cash flow and liquidity configuration, including as of the end of June cash and short-term investment of more than 21 billion US dollars. Amazon shares rose 1.7% on Monday, up 31% in 2017, while the S & P 500 gained 10%.