Summary: Seven&i Holdings Co. Ltd.

One of Japan's two largest retailers Strong market position in the core convenience store business in Japan and North America Strong global recognition of the "7-Eleven" brand Strong consolidated profitability, buoyed by franchise business Severe competition and low profitability in GMS and department store businesses Conservative financial management Strong cash flow generation Likelihood that aggressive investment will slightly delay recovery of debt to EBITDA ratio The stable outlook reflects Standard&Poor's Ratings Services' view that major Japan-based retail group Seven&i Holdings Co. Ltd. is likely to maintain its strong profitability and sound financial standing on a consolidated basis, principally backed by its core convenience store business. We believe the Seven&i group's continued heavy dependence on

...Outlook: Stable The stable outlook reflects Standard & Poor's Ratings Services' view that major Japan-based retail group Seven & i Holdings Co. Ltd. is likely to maintain its strong profitability and sound financial standing on a consolidated basis, principally backed by its core convenience store business. We believe the Seven & i group's continued heavy dependence on profits from its convenience store business, and the wide gap between the profitability of this business and its superstore and department store businesses, make the convenience store business' competitive edge and cash flow increasingly important to our rating analysis....

Summary