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.
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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.
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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%.
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