...October 26, 2020 TOKYO (S&P Global Ratings) Oct. 26, 2020--S&P Global Ratings today said it will classify Japan-based retailer Aeon Co. Ltd.'s (###/Negative/--) subordinated loans as having intermediate equity content. This follows Aeon's announcement today that it plans to issue Ñ60 billion in subordinated loans. We will classify the proposed subordinated loans as having intermediate equity content until 2030. We will regard 50% of the total issuance amount as equity and the remaining 50% as debt. The subordinated loans will be executed on Oct. 30, 2020. The company plans to use the proceeds mainly to repay existing senior debt. The characteristics of the subordinated loans--the issuer's option to defer interest payments, a sufficiently long residual time, and subordination in liquidation or bankruptcy proceedings--meet our standards for deeming them to have intermediate equity content. The loans are due in 30 years. However, interest to be paid on the loans increases 100 basis points...
