Moody's cuts Amazon's outlook to negative from stable

Moody’s has cut its outlook on Amazon to ‘negative’ from ‘stable’ after the online retailer said it was issuing unsecured notes.

Moody's vice president Charlie O'Shea said: "The change in outlook to negative results from Amazon's announcement this morning that it was issuing a sizeable, though amount to be determined, level of new senior unsecured notes," O'Shea wrote.

"Proceeds are to be used for general corporate purposes in support of Amazon's myriad growth initiatives, and it is Moody's expectation that the funds will not be utilized for any form of shareholder returns."

Moody's reiterated its 'Baa1' senior unsecured rating for the company.

The downgrade comes after Amazon missed analysts’ expectations with its latest quarterly results.