Moody’s rates Starbucks notes Baa1

Moody’s Investors Service said it assigned a Baa1 rating to Starbucks Corp.’s proposed senior unsecured notes offering.

Proceeds will be used to repay commercial paper and near-term debt maturities as well as other general corporate purposes, which includes dividends.

The agency revised the outlook to negative from stable.

“The change in outlook to negative reflects Starbuck's material increase in term debt at a time when there is substantial uncertainty around the duration and severity of the coronavirus pandemic on Starbuck revenues, earnings and credit metrics longer term,” said Bill Fahy, a Moody's vice president and senior credit officer, in a press release.

Moody’s affirmed the company’s ratings, including its Baa1 senior unsecured rating.

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