...TOKYO (S&P Global Ratings) Nov. 8, 2019--S&P Global Ratings today said it has classified AEON Co. Ltd.'s (###/Stable/--) subordinated bonds as having intermediate equity content. This follows the Japan-based retailer's Nov. 8 announcement on the issuance of subordinated bonds. We classify the proposed series 5 notes until 2029 and the series 6 notes until 2034 as having intermediate equity content. We will regard 50% of the total bond amount as equity and the remaining 50% as debt. The issue size will be decided later. The characteristics of the subordinated bonds--the issuer's option to defer interest payments, sufficient permanence, and subordination in liquidation or bankruptcy proceedings--meet our standards for deeming them to have intermediate equity content. The series 5 notes are due in 30 years and the series 6 notes in 35 years. However, interest to be paid will increase 100 basis points (bps) in 2029 (year 10) on the series 5 notes and in 2034 (year 15) on the series 6 notes....
