S&P rates Starbucks notes A-

Standard & Poor's said it assigned an A- rating to Starbucks Corp.'s $750 million senior unsecured notes due 2023, the same as the A- corporate credit rating.

The company issued the notes under its shelf registration and plans to use the proceeds from the offering for general corporate purposes.

Following the issuance of the notes, the agency said it believes the company still has about $2 billion of debt capacity at the current rating.

The ratings reflect the company's strong business risk profile and modest financial risk profile, S&P said.

The ratings also consider its leading market position and excellent brand recognition in the specialty coffee market, the agency said.

S&P said it believes the industry is becoming increasingly competitive as many players introduce new and better-quality products.

The specialty coffee segment also is vulnerable to economic downturns and drops in discretionary spending, the agency added.

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