Fitch rates Starbucks notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Starbucks Corp.'s $2 billion multi-tranche issuance of 10-year and 30-year senior unsecured notes.

The proceeds from the sale of the 10-year notes will be used for general corporate purposes, including the repurchase of common stock, business expansion, payment of cash dividends or the financing of possible acquisitions, Fitch said.

The proceeds from the sale of the 30-year notes will be allocated to financing or refinancing in new or existing eligible sustainability projects, which include investments and expenditures that promote the sustainable development goals as defined by the United Nations, the agency said.

The outlook is stable.

The notes will rank equally with existing senior unsecured debt, Fitch said.

While increased food attachment and positive mix are benefiting average ticket size, which saw a 3% increase in fiscal 2018, transaction growth has declined for three consecutive years, the agency said.

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