Moody's rates Apple notes Aa1

Moody's Investors Service said it assigned an Aa1 rating to Apple Inc.'s senior notes. The outlook is stable.

Proceeds will be used to bolster the company's domestic cash balances and aid in the $100 billion shareholder return program.

The agency said the Aa1 rating reflects Apple's position as one the world's leading providers of mobile communications devices, tablets, personal computers, portable media players and digital content. Apple has a very robust financial profile with operating margins, coverage and cash flow metrics that compare favorably with the non-financial companies that have Aaa ratings, Moody's said.

On the other hand, Moody's said competition from other handset manufacturers and strains in telecom distribution will weigh on iPhone pricing and margins, and the company's U.S. cash position will decline substantially as it completes the current capital return program by 2015.

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