Aeon has a leading position and brand recognition in Japan's retail market; The company enjoys strong leadership from its management, and is able to quickly implement improvements to operations; and Its strong performance in nonretail businesses, such as shopping center development and financial services, has eased the negative impact from volatile retail earnings to some extent. Conditions in the retail industry remain difficult, reflecting intense competition and uncertainties over Japan's economy; and A weak financial base for the current rating will persist for the next year or two, given the company's high dependence on debt. The rating on Aeon Co. Ltd. reflects the company's leading position and brand recognition, its strong management leadership and ability to quickly implement improvements to
