We believe that earnings at Aeon have begun to recover, and we expect that the company will derive combined benefits from its takeover of retailer Daiei Inc. Therefore, we are affirming our 'BBB+' long-term corporate credit and debt ratings on Aeon and are removing the ratings from CreditWatch with negative implications. We base our negative outlook on the long-term corporate credit rating on Aeon on our view that the company's financial profile will recover only slowly. Specifically, Aeon's high dependence on debt means its acquisition of shares in Daiei has increased an already heavy financial burden, in our view. On Sept. 26, 2013, Standard&Poor's Ratings Services affirmed its 'BBB+' long-term corporate credit and debt ratings on major Japan-based
