Google Snags Rare S&P Credit Rating Upgrade

Before you go, we thought you'd like these...
Before you go close icon

Google Inc. (NASDAQ: GOOG) now officially has one of the highest corporate credit ratings out there. Standard & Poor's has raised the internet search giant's corporate credit rating to AA and now has the rating outlook at Stable after the upgrade. The move is after a 45% gain in sales, about $2.2 billion in quarterly income, and a cash balance of about $46 billion. S&P has also affirmed its A-1+ short-term rating on the company.

"We raised the corporate credit rating to AA from AA- and removed the ratings from CreditWatch… The stable outlook reflects our expectation that the company will sustain its leadership position in online search, display, and advertising and will generate profitable growth in emerging market places. "

S&P noted that the minimal financial risk profile is and strong business risks are solid. The rating action also assumes that the search, mobile ads, and display markets will continue to see healthy growth over the long-term.

Stocks do not usually react much to a credit rating upgrade and Google is in such good shape that its rating change will by and large not get to help it any time in the near future. The reason is that Google doesn't need to raise capital. At least that is our assumption. Still, shares are up 3.2% at $667.84 against a 52-week range of $556.52 to $774.38.

JON C. OGG


Filed under: 24/7 Wall St. Wire, Analyst Calls, Internet, Software, Technology, Technology Companies Tagged: featured, GOOG
Read Full Story

Markets

S&P 500 2,374.15 25.46 1.08%
DJIA 20,763.89 216.13 1.05%
NASDAQ 5,983.82 73.30 1.24%
DAX 12,454.98 406.41 3.37%
NIKKEI 225 18,938.59 62.71 0.33%
HANG SENG 24,139.48 0.00 0.00%
USD (per EUR) 1.09 0.00 -0.06%
USD (per CHF) 1.00 0.00 0.08%
JPY (per USD) 109.88 0.24 0.22%
GBP (per USD) 1.28 0.00 0.01%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic
Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts
Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside