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 new retail formats Slow recovery of domestic retail business Strong performance in nonretail segments--such as shopping center development and leasing, and financial services--which somewhat diversifies its earnings Low profitability compared with global peers High dependence on debt due to aggressive investments Likelihood that relatively weak financial standing--as reflected in, for example, a somewhat elevated debt-to-EBITDA ratio--will persist for the next year or two High financial flexibility, with good access to various funding channels and strong bank relationships We selected an anchor of 'bbb+' instead of 'a-' to reflect our view that a
