SYDNEY: Moody's Investors Service on Wednesday cut the rating on Japan's government debt by a notch to Aa3, blaming large budget deficits and the build-up of debt since the 2009 global recession.
"Several factors make it difficult for Japan to slow the growth of debt-to-GDP and thus drive this rating action," Moody's said in a statement. The downgrade concluded a review begun on May 31.
Still the ratings agency said the outlook was now stable given the: "undiminished home bias of Japanese investors and their preference for government bonds, which allows the government's fiscal deficits to be funded at the lowest nominal rates globally." ' Reuters
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"Several factors make it difficult for Japan to slow the growth of debt-to-GDP and thus drive this rating action," Moody's said in a statement. The downgrade concluded a review begun on May 31.
Still the ratings agency said the outlook was now stable given the: "undiminished home bias of Japanese investors and their preference for government bonds, which allows the government's fiscal deficits to be funded at the lowest nominal rates globally." ' Reuters
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