TOKYO (Standard&Poor's) Sept. 1, 2011--Standard&Poor's Ratings Services said today its ratings on Aeon Co. Ltd. (A-/Stable/--) are unaffected by the retailer's move Wednesday to make equity-method subsidiary LOC Development Co. Ltd. (NR) a wholly owned subsidiary through acquisition of Daiwa House Industry Co. Ltd.'s (NR) stake in the company. LOC Development is a shopping mall developer and operator established as a 50/50 joint venture between Aeon and Daiwa House Industry. We believe Aeon's move to make LOC Development a wholly owned subsidiary is in line with the retailer's business strategy to make full use of Aeon group's assets. The consolidation of LOC Development is likely to support Aeon's business to some degree because Aeon will be
