Moody's May Lower Some of Starbucks' Ratings
New York City Moody's Investors Service said it might lower some of Starbucks Corp.'s ratings after the coffee chain reported weaker-than-expected earnings.
The company said on Wednesday its fiscal first-quarter profit slumped 69%, and that it planned to slash nearly 7,000 more jobs during a new round of store closures and other cuts.
Late Thursday, Moody's said it might downgrade Starbucks' senior unsecured rating and its short-term rating.
The ratings agency anticipates that current economic conditions and the ongoing pullback in consumer spending will continue to hurt Starbucks' same-store sales results and overall operating performance for the intermediate term.