Moody's: 7-Eleven up to Baa1

Moody's Investors Service today upgraded the senior unsecured rating of 7-Eleven, Inc. to Baa1 from Baa3 and affirmed the Prime-1 commercial paper rating.

The outlook is stable.

The agency said that the action recognizes the significant improvement to 7-Eleven's credit metrics and liquidity from recent actions undertaken by its parent, including the conversion by its parent of $300 million of preferred stock to equity and the purchase by its parent of the Japanese trademark.

"These two transactions confirm the continued strong support of 7-Eleven by its Japanese parent Seven-Eleven Japan Co., Ltd and its ultimate parent, Aa3-rated Seven & i Holdings Co., Ltd, which remains a key rating issue, with the guaranty by SEJ of the commercial paper program the primary driver behind the Prime-1 rating," said Moody's senior analyst Charlie O'Shea in a press release.

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