On Sept. 4, 2008, Standard&Poor's Ratings Services lowered its ratings on Seattle-based Starbucks Corp. to 'BBB' from 'BBB+.' We affirmed the 'A-2' short-term rating. At the same time, we removed the ratings from CreditWatch with negative implications, where they were placed July 2, 2008; the outlook is stable. Weakening credit metrics caused by poor operating trends over the past three quarters were the primary cause for the downgrade. Other factors include growth that will be far slower than our previous expectations, and a potential temporary disruption to operations while the company both closes approximately 600 stores over the next three quarters and implements its new strategic plan. The ratings are based on Starbucks' leading market position and excellent
