Starbucks Corp.'s Senior Unsecured Notes Rated 'A-'

NEW YORK (S&P Global Ratings) Nov. 20, 2017--S&P Global Ratings today assigned its 'A-' issue-level rating to Starbucks Corp.'s proposed senior unsecured notes. We understand Starbucks will use the proceeds for general corporate purposes including share repurchases. The debt issuance is in line with the company's stated strategy to issue additional debt to fund stock buybacks as part of its $15 billion shareholder return plans. We expect Starbucks will balance share repurchases with the execution of a successful business strategy that includes store growth, product initiatives and mobile efforts. We forecast Starbucks to generate same-store sales in the low-single-digit percentage range, modest profit growth, and sound cash flow generation in the next one to two years. For the complete corporate

...NEW YORK (S&P Global Ratings) Nov. 20, 2017--S&P Global Ratings today assigned its 'A-' issue-level rating to Starbucks Corp.'s proposed senior unsecured notes. We understand Starbucks will use the proceeds for general corporate purposes including share repurchases. The debt issuance is in line with the company's stated strategy to issue additional debt to fund stock buybacks as part of its $15 billion shareholder return plans. We expect Starbucks will balance share repurchases with the execution of a successful business strategy that includes store growth, product initiatives and mobile efforts. We forecast Starbucks to generate same-store sales in the low-single-digit percentage range, modest profit growth, and sound cash flow generation in the next one to two years. For the complete corporate credit rating rationale, see our research update on Starbucks, published Nov. 3, 2017, on RatingsDirect. RELATED CRITERIA + Criteria - Corporates - General: Reflecting Subordination Risk In Corporate...

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