Standard and Poor's affirmed Japan's sovereign-debt rating at AA- while maintaining a negative outlook and warning that a downgrade is likely if medium-term growth prospects weaken.
The ranking is supported by an "ample net external asset position, relatively strong financial system, and diversified economy," S&P said in a statement today, also citing the yen's role as a "key international reserve currency." S&P has cut the ratings of European nations including France and Italy this year, along with reducing both the U.S. and Japan last year.
Moody's Investors Service cut Japan by one step to Aa3 on Aug. 24, citing "the build-up in Japanese government debt since the 2009 global recession." Fitch Ratings has the nation at AA- with a negative outlook. (Bloomberg)
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