S&P rates Apple notes AA+

S&P said it assigned an AA+ rating to Apple Inc.'s dollar-denominated senior unsecured notes due 2019, 2020, 2022, 2024, 2027 and 2047.

The proceeds will be used for general corporate purposes, including the repurchase of common stock, payment of dividends and repayment of debt, S&P said.

The agency said it rates the new notes the same as the corporate credit rating on the company.

The company’s AA+ corporate credit rating is unchanged and the outlook remains stable.

Apple's financial risk profile is considered minimal, S&P said.

Despite the proposed debt issuance, the company will maintain a significant net cash position, the agency said, and its financial policy is viewed as conservative.

The ratings also consider the company’s ongoing substantial share repurchases and intention to increase dividends on an annual basis, S&P said.

Although total shareholder returns are expected to exceed free cash flow on occasion, robust overall cash generation affords the company the flexibility to return large amounts of cash to shareholders without detracting from the overall credit quality, the agency explained.

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