NEW YORK (TheStreet) -- Shares of Amazon.com (AMZN) are down 2.75% to $329.32 after Moody's investors service lowered its outlook for Amazon's credit rating to "negative" from "stable" after the online retailer said it would issue a "substantial" level of new senior unsecured notes, the Wall Street Journal reports.
Moody's, however, affirmed Amazon's medium investment-grade Baa1 rating, as the company's "excellent liquidity provides sufficient cushion," the credit ratings firm told the Journal.
Moody's said it took into consideration Amazon's dominant position in the online retail space, but said that the company faces growing competition from traditional retailers who work to broaden their online businesses, the Journal added.
Separately, TheStreet Ratings team rates AMAZON.COM INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMAZON.COM INC (AMZN) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself, poor profit margins and feeble growth in its earnings per share."