TOKYO (Standard&Poor's) March 26, 2013--Standard&Poor's Ratings Services today said that it regards subordinated notes that Aeon Co. Ltd. (A-/Negative/--) plans to issue as having "intermediate equity content," based on our ratings criteria. Aeon announced yesterday that it will issue ¥60 billion in subordinated notes on March 29. Our view is based on the following factors: (1) the maturity is long at 60 years, (2) although the notes have a moderate step-up of 100 basis points at year 10 or after, and a call option at year five or later, intent-based replacement language, in which Aeon intends to replace the notes with an instrument of equal or higher equity content, is publicly stated; (3) the issuer has
