...NEW YORK (S&P Global Ratings) May 11, 2016--S&P Global Ratings assigned its 'A-' issue-level rating to Starbucks Corp.'s proposed $500 million senior unsecured notes due 2026 and $250 million due 2021. We expect the company to issue the proposed notes under its shelf registration statement filed Sept. 3, 2013. We understand Starbucks will use the proceeds of the 2026 notes for sustainability projects relating to coffee sourcing, while the proceeds of the 2021 notes will be used for general corporate purposes, to repurchase its shares, pay a cash dividend, or to fund a possible acquisition. Pro forma for the proposed debt issuance, adjusted debt to EBITDA will increase to 1.3x from 1.2x at March 27, 2016. Starbucks' performance trends are robust, with persistent good same-store sales and profit gains as it expands its store footprint, both in the U.S. and in international markets. It also remains focused on customer loyalty, product innovation, and technology initiatives. We think these...
