Wednesday, August 24, 2011

Moody's downgrades Japan's debt rating... again

Moody's has cut Japan's credit rating by one notch citing concerns about the government's ability to reduce its mountain of debt and implement long-term fiscal sustainability measures.

Moody's now holds rating for Japan at Aa3, on a par with rival agency Standard & Poor's, which rates the world's third-largest economy at AA-, the same level as China.

Later this month, Japan will face yet another change in the country's political leadership, the frequency of which Moody's cited as a key factor obstructing the implementation of necessary fiscal measures to bring down its debt.

Naoto Kan, the incumbent, is expected to stand down as soon as this Friday as leader of the ruling Democratic party and prime minister to make way for the country's sixth prime minister in as many years. more