S&P: Aeon Credit Service (Asia) remains on watch

Standard & Poor's said it kept the A- long-term and A-2 short-term counterparty credit ratings on Aeon Credit Service (Asia) Co. Ltd. on CreditWatch with negative implications.

The agency also said it maintained the company's cnAA- long-term and cnA-1 short-term Greater China regional scale ratings.

The ratings were originally placed on CreditWatch in September.

The CreditWatch was maintained pending the outcome of a proposed merger involving the company's parent, Aeon Credit Service Co. Ltd.

The merger between Aeon Credit Service and Aeon Bank Ltd. is likely to weaken the group credit profile, S&P said.

The potential parent support available to Aeon Credit Service (Asia) may diminish upon the merger, the agency said. The strategic importance of Aeon Credit Service (Asia) to Aeon Credit Service may reduce following a potential enlargement of the parent's asset, equity and earnings base as a result of the merger, S&P said.

© 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.