Standard&Poor's Ratings Services' ratings on Seattle-based Starbucks Corp. reflect its "strong" business risk profile and "modest" financial risk profile. We based our assessment of Starbucks' business risk profile on its leading market position and excellent brand recognition in the specialty coffee market. We believe the industry is becoming increasingly competitive, as many players introduce new and better-quality products. In addition, we view the specialty coffee segment of the retail industry as vulnerable to economic downturns and a drop in discretionary spending. Still, we believe that Starbucks' continuous and successful product innovation and aggressive expansion into less-saturated international markets will bolster profit growth over the next two to three years. Despite the slowdown in the global economy, Starbucks has
