S&P lifts Seven & i view to stable

S&P said it revised the outlook on Seven & i Holdings Co. Ltd. to stable from negative, along with the outlooks on its subsidiary, Seven-Eleven Japan Co. Ltd., and its subsidiary, 7-Eleven Inc.

S&P also said it affirmed the AA- long-term issuer credit ratings on each of the three companies and the A-1+ short-term issuer credit rating on Seven-Eleven Japan.

The outlook revision reflects a view that the Seven & i group's operating performance is gradually improving, especially that of its convenience store businesses in Japan and overseas, the agency explained.

The stable outlook also considers an expectation that the group's robust operating performance and conservative financial management will help it gradually improve key financial ratios to levels commensurate with the current ratings, S&P said.

These ratios worsened after the group acquired a U.S. convenience store business in January 2018, the agency noted.

S&P said it expects the main convenience store business in Japan to continue to fuel a gradual recovery in the group's overall operating performance.

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