S&P downgrades AEON

S&P said it lowered by AEON Co. Ltd.'s long-term issuer credit rating to BBB and senior unsecured debt rating to BBB-.

The outlook is stable.

The downgrade reflects a view that AEON's earnings will likely to remain low due to the subdued performance of its retail businesses, S&P said.

Aggressive investments, along with low profit levels, make a swift recovery in its key financial ratios unlikely, the agency said.

The stable outlook reflects an expectation that AEON will maintain a financial standing commensurate with the rating by upholding a certain degree of financial discipline despite continued heavy investments, S&P said.

The agency said it believes AEON can maintain its strong position in the domestic retail market and its solid business base by diversifying its businesses and earnings sources.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.