(The following was released by the rating agency) TOKYO (Standard & Poor's) April 5, 2012--Standard & Poor's Ratings Services today affirmed its 'BBB' long-term corporate credit rating and its 'A-2' short-term corporate credit and commercial paper program ratings on Uny Co. Ltd. and removed the ratings from CreditWatch with negative implications. We then withdrew the ratings at the company's request. At the time of the withdrawal, the outlook on the long-term corporate credit rating was negative.
We placed the ratings on Uny on CreditWatch on Feb. 20, 2012, based on its bid to take over convenience store subsidiary Circle K Sunkus Co. Ltd. (not rated). We based today's rating action on completion of the takeover on April 2 and our expectation that Circle K Sunkus will become a wholly owned subsidiary of Uny. The affirmation of the ratings reflects our opinion that the takeover will benefit group earnings to a small extent. The negative outlook reflects our view that the positive effect on Uny's earnings in the next one to two years will not fully offset weakness we expect to see in its financial risk profile due to debt it will take on to finance the transaction. We also expect the competitive domestic retail market to slow a recovery in Uny's financial risk profile.