Moody's has placed Starbucks' credit rating on a negative watch list, and previously the outlook was negative. This time, Moody's initiated a rating downgrade evaluation stemming from Starbucks's earlier announcement that it had reached an agreement with Boyu Capital, and the two sides would set up a joint venture to operate Starbucks' retail business in the Chinese market. Moody's said, “The core consideration in this downgrade evaluation is that depending on the specific use of the funds, this transaction may delay the process of improving Starbucks credit metrics.”

Moody's has placed Starbucks' credit rating on a negative watch list, and previously the outlook was negative. This time, Moody's initiated a rating downgrade evaluation stemming from Starbucks's earlier announcement that it had reached an agreement with Boyu Capital, and the two sides would set up a joint venture to operate Starbucks' retail business in the Chinese market. Moody's said, “The core consideration in this downgrade evaluation is that depending on the specific use of the funds, this transaction may delay the process of improving Starbucks credit metrics.”