Amazon receives AA- rating from Fitch for proposed notes offering

Investing.com -- Amazon.com, Inc. has received a ’AA-’ rating from Fitch Ratings for its proposed unsecured notes issuance, with proceeds intended for general corporate purposes including funding working capital and capital expenditures.

The rating, which comes with a Stable Rating Outlook, reflects Amazon’s leading positions in global e-commerce and cloud computing services, strong customer relationships, and significant scale with approximately $155 billion in trailing twelve months EBITDA as of September 2025.

Fitch highlighted Amazon’s strong financial profile, noting that the company’s annual revenue growth averaged about 18% over the past five years, with its high-margin AWS business growing at approximately 25% annually during the same period. This growth has expanded Amazon’s EBITDA to $139 billion in 2024 (21.8% of revenue) from $33 billion in 2015 (14.2% of revenue).

The rating agency expects Amazon’s EBITDA to grow at close to 10% in the medium term, driven by faster revenue growth in the higher-margin AWS business. EBITDAR leverage, which was 0.9x in 2024, is projected to remain well below 2.0x in the medium term.

Despite anticipated near-term challenges in the U.S. retail sector, including declining consumer sentiment and rising costs related to evolving tariff policies, Fitch believes Amazon’s value price positioning and business diversification will allow it to navigate through market volatility better than most competitors.

Amazon’s strategic foresight has yielded leading market shares in e-commerce and cloud computing, with the company’s innovations increasing customer confidence in online purchases. AWS, which began as Amazon’s internal platform, has established itself as a leader in the cloud computing industry.

The rating agency estimates the cloud services market could grow at least 10% annually in the medium term, while e-commerce growth should reach high single digits. Amazon’s AI investments, though in early stages, are expected to provide significant growth opportunities over time.

Fitch also noted increased regulatory scrutiny as a risk factor, mentioning the Federal Trade Commission’s lawsuit against Amazon in September 2023 alleging monopolistic activities, which Amazon has denied. In September 2025, the company agreed to a $2.5 billion settlement related to allegations of improper Prime enrollments.

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