TOKYO (Standard&Poor's CreditWire) Aug. 31, 1999--Standard&Poor's today lowered its rating based on public information, or 'pi' rating, on Jusco Co. Ltd. to triple-'Bpi' from single-'Api'. The downgrade reflects increased pressure on Jusco's earnings stemming from lackluster consumer spending in Japan as well as the company's rising debt burden. Japan's third-largest general merchandiser, Jusco's earnings performance has deteriorated over the past several years. Although record-high revenues in fiscal 1998 (ended Feb. 28, 1999) caused operating profit to improve from the previous year, the operating margin before depreciation was a mere 6.45%. The lower profitability is chiefly a result of the prolonged downturn in consumer spending; in this environment, effective merchandising and a flexible cost structure are increasingly
