S&P revises outlook on Starbucks to negative

The ratings agency also lowered the company's short-term rating to 'A-3' from 'A-2,' but removed it from CreditWatch negative, where it was placed Feb. 2. In addition, S&P affirmed its 'BBB' corporate credit rating on the coffee retailers, which is two notches above junk.

Standard & Poor's credit analyst Jackie E. Oberoi noted that the company's total same-store sales fell 10 percent and operating margins contracted during the quarter. Starbucks has struggled to keep its customers as the recession has deepened and has been promoting loyalty cards and other options to give customers more value without hurting its premium brand status.