Moody's ups Starbucks to Baa1

Moody's Investors Service said it upgraded Starbucks Corp.'s senior unsecured ratings to Baa1 from Baa2 and short-term commercial paper rating to P-2 from P-3.

The outlook is positive.

Moody's said the upgrade reflects Starbucks' positive same-store sales performance that further strengthens the company's brand, drives higher earnings and cash flows and improved credit metrics.

The upgrade also incorporates the resolution of the Kraft arbitration which despite requiring a significant draw on liquidity and higher debt levels still results in credit metrics appropriate for the higher rating. The Prime-2 short-term commercial paper rating also reflects Moody's view that Starbucks liquidity will remain very good.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.