Moody’s assigns Aa1 to Apple notes

Moody's Investors Service said it assigned a rating of Aa1 to Apple Inc.'s senior unsecured notes issuance.

Proceeds will be used to bolster the company's U.S. cash balances and aid in company's announced and future shareholder return programs.

The outlook is stable.

Apple's new debt raise continues the company's strategy to fund its domestic cash needs through incremental borrowings, the agency explained.

Moody's noted that in the most recently completed fiscal quarter, the company has resumed revenue growth after a fiscal year 2016, which saw a sales decline for the first time in 15 years. The company's attention to cost management also allowed it to maintain very high free cash flow levels while it grew its cash and investments balances, all of which support the Aa1 rating and stable outlook, Moody’s added.

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