S&P: AEON view to stable

Standard & Poor’s said it revised the outlook to stable from negative on AEON Co. Ltd.

The outlook revision reflects the increased likelihood of recovery in AEON’s business performance compared with previous assumptions, given revitalization of existing stores, organizational restructuring, progress in business restructuring within the group and contributions to profit from steadily performing nonretail businesses, S&P said.

The revision also considers an expectation that the company’s core financial ratio of debt-to-EBITDA will improve moderately from a bottom in fiscal 2014, supported by a trend toward recovery in AEON’s business performance, the agency said.

S&P also said it affirmed the long-term corporate credit and senior unsecured debt ratings on AEON at BBB+.

AEON’s business performance has shown signs of recovery with the company’s supermarket business, one arm of its core retail business and supported by refurbishment of its sales floors and a reshuffle of its merchandise lineup, the agency said.

The company also launched various initiatives to strengthen group-wide competitiveness, S&P said.

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