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Sun Keeps Shining on Amazon

Moody's boosts its rating on the online bookseller's debt.

(AMZN) - Get Report

continues to reap the rewards for turning its first profit.

On Friday ratings agency Moody's upgraded Amazon's debt, sending shares up $1.20, or 8.6%, to $15.21 in recent trading. The upgrade, which affects $2.2 billion in debt, reflects "improved operating measures and sharply lower cash drain from operations," Moody's said in a statement. Its rating outlook remains stable, Mood's said.

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The upgrade came three days after the Seattle-based company reported its first-ever profit, significantly beating Wall Street consensus estimates for both revenue and earnings. At the same time, the company said it had about $1 billion in cash and marketable securities, or $100 million more than its prior projections.

The stellar quarter put to rest questions over Amazon's viability -- cash burn issues that had dogged the company for much of last year. Moody's said the $1 billion is "sufficient to finance year-end vendor payables and finance cash needs through the medium term." It also said it doesn't expect Amazon to have to tap the capital markets within the next two years.