S&P eyes possible upgrade for Google rating

Associated Press

NEW YORK (AP) — Standard & Poor's Ratings Services on Tuesday placed its corporate credit rating for Google Inc. under review for a possible upgrade, citing the Internet search leader's continued strong performance, prudent financial policy and minimal risk.

S&P put its 'AA-' rating for Google on "CreditWatch" with positive implications. S&P also affirmed its 'A-1+' short-term rating for the company.

Google has the resources to adapt to a changing marketplace, S&P said in a note. The rating agency noted that Google's revenue increased nearly 30 percent in the six months ended June 30 compared with the first half of 2011, while net income rose 32 percent and Google wound up with $43.1 billion in cash and securities.

Google, based in Mountain View, Calif., hit analysts' earnings targets for the second quarter. The company has refined its selection and presentation of its Internet ads in a way that is more appealing to its users.

S&P said it will meet with Google management to review the company's strategic direction, financial policy and growth objectives before completing its review.

Google shares slipped $6.03 to end Tuesday trading at $669.51. The shares have changed hands between $480.60 and $678.87 in the past 52 weeks.