TOKYO - Moody's investors service on Wednesday cut the rating on Japan's government debt to a level of Aa3, the fourth-highest level blame high budget deficits and the accumulation of debt since the global recession in 2009.
The Agency had warned in May that it can Japan's Aa2 review due to increased concerns about the faltering growth Outlook and a weak political reaction to a bulging public debt now twice $5 trillion GDP downgrade.
"Several factors complicate Japan it to slow down the growth of the debt to GDP and so take this review period," Moody's said in a statement, adding that the March 11 had exacerbated problems of earthquake and subsequent nuclear crisis of Japan.
Still, the rating agency said the Outlook now stable given "unabated home shift of Japanese investors and their preference for government bonds, the budget deficits of the Government, with the lowest nominal prices around the world can be promoted."
The yen moved with little in the news, trading about 76,7 against the dollar. .
Downgrade Moody's rating for Japan in line has rival Agency standard & Poors, which the country in January on AA, the fourth highest on the scale.
Persistent deflation and slow growth has tied Japan's economy for years, reduction of revenue for the Government, to finance depending on debt issuance, a large part of its budget.
Copyright 2011 Thomson Reuters.
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