Bulletin: Japan-Based Aeon's Subordinated Bonds Assessed As Having Intermediate Equity Content

TOKYO (S&P Global Ratings) Aug. 6, 2021--S&P Global Ratings today said it will classify Japan-based retailer Aeon Co. Ltd.'s (BBB/Negative/--) two subordinated bonds as having intermediate equity content. The planned issuance will have no impact on our issuer credit rating on the company. It said today that it will issue the bonds to refinance the series 3 and 4 subordinated bonds (totaling ¥46.5 billion) it issued in September 2016. We will classify the proposed subordinated bonds as having intermediate equity content until 2031 for series 8 and 2036 for series 9. We will regard 50% of the total issuance amount as equity and the remaining 50% as debt. Upon issuance of the bonds, we will reclassify the amount of series

...August 6, 2021 TOKYO (S&P Global Ratings) Aug. 6, 2021--S&P Global Ratings today said it will classify Japan-based retailer Aeon Co. Ltd.'s (###/Negative/--) two subordinated bonds as having intermediate equity content. The planned issuance will have no impact on our issuer credit rating on the company. It said today that it will issue the bonds to refinance the series 3 and 4 subordinated bonds (totaling Ñ46.5 billion) it issued in September 2016. We will classify the proposed subordinated bonds as having intermediate equity content until 2031 for series 8 and 2036 for series 9. We will regard 50% of the total issuance amount as equity and the remaining 50% as debt. Upon issuance of the bonds, we will reclassify the amount of series 3 and 4 subordinated bonds to be replaced as having no equity content, revising downward our previous assessment of the bonds as having intermediate equity content. The series 3 and 4 subordinated bonds are callable in September 2021. The characteristics of...

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