S&P Answers Questions About Revision Of Outlook On Japan's AEON Co. Ltd. To Stable From Negative

TOKYO (Standard&Poor's) Sept. 9, 2015--Standard&Poor's Ratings Services today published a report outlining how it rates Japan-based retailer AEON Co. Ltd. On Sept. 9, 2015, we revised the outlook on our 'BBB+' long-term corporate credit rating on AEON to stable from negative and affirmed the rating. Business conditions have changed rapidly in Japan's retail industry, with greater competition across business formats triggering a flurry of corporate restructurings and consumption polarizing at extremes of budget consciousness and willingness to splurge on quality items since the 2014 hike in sales tax. Amid these conditions, AEON's earnings have deteriorated as a result of sluggishness in its mainstay retail business. Operating revenue declined for a third consecutive year in fiscal 2014

...TOKYO (Standard & Poor's) Sept. 9, 2015--Standard & Poor's Ratings Services today published a report outlining how it rates Japan-based retailer AEON Co. Ltd. On Sept. 9, 2015, we revised the outlook on our '###+' long-term corporate credit rating on AEON to stable from negative and affirmed the rating. Business conditions have changed rapidly in Japan's retail industry, with greater competition across business formats triggering a flurry of corporate restructurings and consumption polarizing at extremes of budget consciousness and willingness to splurge on quality items since the 2014 hike in sales tax. Amid these conditions, AEON's earnings have deteriorated as a result of sluggishness in its mainstay retail business. Operating revenue declined for a third consecutive year in fiscal 2014 (ended Feb. 28, 2015). Meanwhile, the company is conducting a major revamp of its operations. This entails restructuring and reorganization, including the overhaul of its The Daiei Inc. stores, establishment...

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