S&P raises Starbucks

Standard & Poor's said it raised its ratings on Starbucks Corp. to BBB+ from BBB because of the company's continued strong performance and its expectation for good performance through year-end.

The agency said it is also affirming the A-2 short-term ratings on the company.

"Our ratings are based on Starbucks Corp.'s leading market position and excellent brand recognition in the specialty coffee market, as well as the company's history of strong cash flow generation," said credit analyst, Jackie Oberoi.

These strengths, which the agency said it expects to be maintained, are tempered by weak top-line growth compared with historical levels because of the still-sluggish U.S. economy.

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