Japan-Based Seven&I Holdings Placed On CreditWatch Negative On Plan To Buy U.S.-Based Speedway

Seven&i on Aug. 3, 2020, said that its plans to acquire Speedway for $21 billion. The acquisition, if it goes through as planned, would make Seven&i's overseas convenience store operations into an earnings source with similar scale to its Japanese convenience store business. The large acquisition, if mostly financed by debt, would inevitably substantially worsen the company's financial standing, even when taking into account profits stemming from the acquisition and measures to ease the company's financial burden. We are placing on CreditWatch with negative implications all of our ratings on Seven&i, Seven-Eleven Japan, and 7-Eleven Inc. We intend to resolve the CreditWatch placements when the deal is complete and all related financing is in

...August 3, 2020 - Seven & i on Aug. 3, 2020, said that its plans to acquire Speedway for $21 billion. - The acquisition, if it goes through as planned, would make Seven & i's overseas convenience store operations into an earnings source with similar scale to its Japanese convenience store business. - The large acquisition, if mostly financed by debt, would inevitably substantially worsen the company's financial standing, even when taking into account profits stemming from the acquisition and measures to ease the company's financial burden. - We are placing on CreditWatch with negative implications all of our ratings on Seven & i, Seven-Eleven Japan, and 7-Eleven Inc. - We intend to resolve the CreditWatch placements when the deal is complete and all related financing is in place, and we are likely to lower the long-term ratings by one or two notches if the company finances the deal mostly with debt. TOKYO (S&P Global Ratings) Aug. 3, 2020--S&P Global Ratings today said it has placed on CreditWatch...

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