TOKYO (Standard&Poor's) Oct. 16, 2006--Standard&Poor's Ratings Services today affirmed its 'A-' long-term corporate credit rating on Aeon Co. Ltd., following the company's announcement that it had obtained the exclusive right to negotiate a possible capital and business alliance with Daiei Inc. (NR). The outlook on the long-term rating is stable. The affirmation is based on Standard&Poor's view that the cost of stock acquisitions will not reach a level that would significantly weaken the company's credit quality. Although the acquisitions may lead to additional financial needs beyond planned portfolio investments, the likelihood of this occurring remains low at present. Given Aeon's track record, the company's management is unlikely to adopt business strategies that would lead
