CREDIT APPROVAL MEMORANDUM

Borrower:	Amazon.com Inc.	Ticker:	AMZN
Sector:	Consumer Discretionary	Date:	2026-02-19
Internal Rating:	A	Score:	85/100
PD Rating:	0.05% - Very Low	Regulatory:	Pass

Executive Summary

This memorandum recommends approval of the proposed credit facility for Amazon.com Inc.. AWS stabilization is encouraging. Retail margins are improving due to regional fulfillment network restructuring.

Key Credit Metrics

Metric	Value	Guideline/Covenant
Net Leverage (Debt/EBITDA)	1.8x	< 3.5x
Interest Coverage (EBITDA/Int)	12.5x	> 5.0x
Liquidity Score	81.2	> 70

Financial Analysis

Revenue & Earnings: The company generated $113.8B in revenue in 2024, with EBITDA of $29.7B. Forecasts indicate continued growth.

Liquidity: The company maintains a strong liquidity profile with access to capital markets and revolving credit facilities.

Cash Flow: Free Cash Flow conversion remains strong, supporting debt service and capital returns.

Risk Factors

Regulatory antitrust investigations are ongoing. Consumer discretionary spending headwinds could impact retail volume.
Macroeconomic headwinds impacting consumer spending.
Technological disruption from competitors.

Recommendation

Approve. The risk/reward profile is favorable.

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Credit Officer