Performance at Seattle-based coffee retailer Starbucks Corp. improved during the first quarter of 2010, despite continued weakness in the U.S. economy. We are revising our rating outlook on Starbucks to positive from stable. We are affirming our 'BBB' corporate credit and 'A-2' short-term ratings on the company. Our positive rating outlook reflects our expectation that Starbucks will manage well through the remainder of 2010 and credit protection measures will remain at current levels or improve modestly. On March 23, 2010, Standard&Poor's Ratings Services revised its rating outlook on Starbucks Corp. to positive from stable because of improved operating performance in the first quarter of 2010 and our expectation for continued improvement during the remainder of fiscal year 2010.
