Aeon has a leading position and brand recognition in Japan's retail market The company features strong managerial leadership and can quickly implement improvements to operations Strong performance in nonretail segments, such as shopping center development and financial services, has somewhat diversified its business Difficult conditions continue in the retail industry, reflecting intensifying competition and Japan's sluggish economy Low profitability compared with international peers, though it has been improving Likelihood that weak financial standing for the current ratings will persist for the next year or two because of high dependence on debt Our ratings on Japan-based retail giant Aeon Co. Ltd. (A-/Negative/--) reflect the company's leading position and brand recognition in Japan's retail market, supported by the highest operating revenues of
