Moody's: Amazon to ‘kick start’ its grocery business with purchase of Whole Foods Market

Moody's Investor Services is feeling positive about Amazon's plans to acquire Whole Foods Market.



The ratings agency assigned the deal a Baa1 rating and revised Amazon’s credit outlook to positive from stable, reported Marketwatch. The report also said that Amazon is planning to issue up to $16 million in debt to fund the online giant's acquisition of Whole Foods.



The move “reflects our view that despite the increase in debt, the Whole Foods acquisition is an immediate credit positive for the company on a variety of fronts,” Moody’s VP Charlie O’Shea wrote in a note. “Whole Foods provides Amazon with greater scale and a crucial brick-and-mortar presence in a segment where it has been trying to grow, and the almost 500 existing Whole Foods locations can be utilized to expand food delivery, as well as provide pickup points for online orders of any type.”



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