S&P assigns Amazon.com loan AA-

Standard & Poor's said it assigned its AA- issue-level rating to Amazon.com Inc.'s $2 billion unsecured revolving credit facility due 2016.

The term of the credit agreement may be extended for up to three additional one-year terms if approved by the lenders.

The company is expected to use the facility for working capital, acquisitions, or capital expenditures.

S&P said the AA- issue-level rating reflects its view of the company's liquid asset base, negative working capital cycle, and lack of material secured borrowings.

The AA- corporate credit rating and stable outlook reflect the expectation for strong cash flow generation and that business conditions will remain favorable for online retailers over the next two years, with growth rates among the highest for the entire retail industry. Amazon's conservative financial policies and good financial flexibility also support the rating and outlook, the agency said.

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