The ratings on Japan-based retailer Aeon Co. Ltd. (A-/Negative/--) reflect the company's strong business risk profile, supported by its leading market position and brand recognition; its strong management leadership and ability to make quick improvements to operations; and its strong performance in nonretail businesses, including shopping center development and financial services, which has diversified its earnings to an extent. Factors that offset these strengths are intense competition in the domestic retail industry and high dependence on debt, the second of which leads us to regard its financial risk profile as intermediate and likely to remain weak for the current ratings for the next year or two. Aeon owns one of Japan's largest retail networks, offering various retail formats and high
