Speedway Acquisition Would Weigh On Japan-Based Seven&i's Creditworthiness

TOKYO (S&P Global Ratings) Feb. 25, 2020--S&P Global Ratings today said that its rating on Seven&i Holdings Co. Ltd. (AA-/Stable/--) would come under downward pressure if the major Japan-based retailer acquires U.S.-based convenience store and gas station chain Speedway LLC. Seven&i is considering buying the subsidiary of U.S.-based energy company Marathon Petroleum Corp. (BBB/Stable/A-2) for $22 billion (about ¥2.45 trillion), according to media reports. We are highly likely to review the rating for a possible downgrade if the deal proceeds as reported and Seven&i finances it mostly with debt and cash and deposits. This is because the large acquisition would inevitably lead to a substantial deterioration in the company's financial standing. This is even

...February 25, 2020 TOKYO (S&P Global Ratings) Feb. 25, 2020--S&P Global Ratings today said that its rating on Seven & i Holdings Co. Ltd. (##-/Stable/--) would come under downward pressure if the major Japan-based retailer acquires U.S.-based convenience store and gas station chain Speedway LLC. Seven & i is considering buying the subsidiary of U.S.-based energy company Marathon Petroleum Corp. (###/Stable/A-2) for $22 billion (about Ñ2.45 trillion), according to media reports. We are highly likely to review the rating for a possible downgrade if the deal proceeds as reported and Seven & i finances it mostly with debt and cash and deposits. This is because the large acquisition would inevitably lead to a substantial deterioration in the company's financial standing. This is even if, as it did after its 2018 purchase of part of U.S.-based Sunoco LP, Seven & i eases its financial burden through the selective acquisition of stores, swift franchising, and incremental profits from the acquisition....

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