Tokyo: Japan’s credit rating has been cut to “negative” from “stable” by the Moody’s Investor Services, which cited concerns about the country’s debt levels.
Moody’s currently rates Japan’s government debt at an Aa2 level.
In January, rival rating agency Standard & Poor’s downgraded Japan’s credit rating from AA to AA-, also citing debt concerns.
Earlier this month, Japan was overtaken by China as the world’s second-largest economy.
The country has been trying to boost its economic growth and as a result government spending and borrowing has increased.
Moody’s said that the government needed to do more to cut borrowing levels.
Tokyo currently has the highest government debt levels of any industrialised nation.
Moody’s said that it cut its rating on Japan because of “heightened concern that economic and fiscal policies may not prove strong enough to achieve the government’s deficit reduction target”.
Also they said the government’s policies would probably not be able to “contain the inexorable rise in debt, which already is well above levels in other advanced economies”.
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