The ratings on Seattle-based Starbucks reflect its "strong" business risk profile and "modest" financial risk profile. Its business risk profile reflects its leading market position and excellent brand recognition in the specialty coffee market. It also reflects our expectation for good performance and profitability gains over the next two years. Although we expect Starbucks' continuous product innovation and aggressive expansion into less saturated international markets to bolster profit growth over the next two to three years, we believe that performance gains for the next year will decelerate because of the weakening global economy. We view the specialty coffee segment of the retail industry as vulnerable to economic downturns and a drop in discretionary spending. In addition, the industry is becoming
