SAN FRANCISCO (S&P Global Ratings) March 5, 2020--S&P Global Ratings today said that it believes Starbucks Corp. (BBB+/Stable/A-2) has a sufficient cushion at the current rating to absorb the near-term challenges facing its China operations arising from the new coronavirus outbreak. While we have lowered our revenue and earnings forecasts for the company following its updated guidance, we continue to expect that it will maintain adjusted leverage below our 3x downgrade threshold. China is Starbucks' second-largest market and accounts for approximately 10% of the company's global sales. At its peak, the company closed approximately 80% of its stores in the country in early February in response to the viral outbreak. While Starbucks has reopened more than 90% of these stores,
