Moody's upgrades Amazon.com

Moody's Investors Service said it upgraded Amazon.com, Inc.'s long-term rating to A3 from Baa1, including its senior unsecured rating and legacy Whole Foods Market, Inc.'s senior unsecured rating to A3 from Baa1.

The agency also affirmed Amazon's prime-2 commercial-paper rating.

The outlook is positive.

The upgrades recognize the improvements in operating performance of Amazon's core retail business during 2018 such that its debt-to-EBITDA ratio has improved by more than one turn since 2017's level, Moody's said.

The North America business has generated significantly improved operating income, which more than offsets the continuing losses in the international business, the agency said.

The ratings continue to reflect its leading competitive position in multiple segments of online retail and the continuing strength and profitability of Amazon Web Services, which accounts for the majority of the company's operating income, as well as its significant cash flow generation and excellent liquidity profile, Moody's said.

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