Starbucks Upgraded To 'A' On Expectations For Continued Solid Operating Cadence And Financial Policy; Outlook Stable

Coffee manufacturer and retailer Starbucks continues to perform well with robust profitability and cash flow gains, contributing to sound credit metrics. We expect these trends to continue. We do not expect the company's strategies for growth and financial policy plans to change following the recent announcement of a repositioning of its management team, with Howard Schultz becoming the Executive Chairman of the company and Kevin Johnson promoted to president and chief executive officer, effective April 3, 2017. We are raising our ratings on Starbucks, including the corporate credit rating to 'A' from 'A-'. The stable outlook reflects our expectation that the company will persistently generate good operating results and cash flows through solid in-store execution, and prudently expand its store

...+ Coffee manufacturer and retailer Starbucks continues to perform well with robust profitability and cash flow gains, contributing to sound credit metrics. We expect these trends to continue. + We do not expect the company's strategies for growth and financial policy plans to change following the recent announcement of a repositioning of its management team, with Howard Schultz becoming the Executive Chairman of the company and Kevin Johnson promoted to president and chief executive officer, effective April 3, 2017. + We are raising our ratings on Starbucks, including the corporate credit rating to 'A' from 'A-'. + The stable outlook reflects our expectation that the company will persistently generate good operating results and cash flows through solid in-store execution, and prudently expand its store and product base while maintaining leverage around 1x. NEW YORK (S&P Global Ratings) Dec. 14, 2016--S&P Global Ratings raised its ratings on Seattle-based coffee manufacturer and retailer...

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