S&P rates Starbucks notes A-

S&P said it assigned its A- issue-level rating to Starbucks Corp.'s proposed $1.6 billion note issuance.

All other ratings including the A- corporate credit rating and stable outlook are unchanged. The short-term rating remains A-2.

“The ratings reflect our expectation that Starbucks will issue debt and use generated cash flows to fund its three-year, $15 billion shareholder return plan, while maintaining leverage in the 1.8x-1.9x range,” S&P said in a news release.

“We think the company is balancing share repurchases with the execution of a successful business strategy that includes store growth, product initiatives, and mobile efforts.”

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