-R&I upholds Rakuten KC's paper rating despite limit increase.(Rating and Investment Information)(Rakuten KC Company Ltd.)(Brief article)

INTERNET BUSINESS NEWS-(C)1995-2011 M2 COMMUNICATIONS

28 February 2011 - Rating and Investment Information (R&I) has reiterated its a-2 rating on the commercial paper programme of Rakuten KC Company Ltd (Rakuten KC), whose limit was increased to JPY 75 billion (USD 916.5m/EUR 662.2m) from JPY 50 billion.

The increase of the issue limit is aimed at cutting financing costs and boosting the funding flexibility, the agency said. In R&I's view, Rakuten KC ensures sufficient liquidity for redemption even after the limit increase.

Rakuten KC is the core credit card company of the Rakuten group, R&I noted. It is responsible for the group's settlement services business and contributes also to the customer retention efforts, the agency added. Rakuten KC's issuer rating mirrors the one on the group's core company, Rakuten Inc (OSA:4755), as the credit card arm is considered highly important to the group.

Rakuten's Internet shopping mall Rakuten Ichiba and travel businesses remain firm, R&I said. According to the agency, Rakuten KC also keeps its own risk resilience and ability to absorb costs through basic profits at levels corresponding to the BBB rating category.

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