We derive our 'BBB+' corporate credit rating on AEON Co. Ltd. from: Our 'bbb+' anchor for AEON, based on our assessment that the company's business risk profile is "strong" and its financial risk profile is "intermediate." Our selection of a 'bbb+' anchor instead of 'a-', reflecting our view that the company's financial profile will recover only slowly because its acquisition of shares in retailer Daiei Inc. increased an already heavy financial burden and recovery of its retail business will also be slow. The lack of impact on the rating from our modifiers. Leading position and brand recognition in Japan's retail market Strong ability to differentiate itself from its competitors, as a forerunner in both developing private brand products and adopting
