S&P downgrades Japan credit rating to AA

27 January 2011 11:19 am - 0 - {{hitsCtrl.values.hits}}

A A A

Standard & Poor's on Thursday lowered Japan's long-term sovereign credit rating to AA minus from AA, saying it expected the country's fiscal deficits to stay high in coming years.

"The downgrade reflects our appraisal that Japan's government debt ratios -- already among the highest for rated sovereigns -- will continue to rise further than we envisaged before the global economic recession hit the country and will peak only in the mid-2020s," the agency said.

"In our opinion, the Democratic Party of Japan-led government lacks a coherent strategy to address these negative aspects of the country's debt dynamics," it said in the release.

The AA minus rating is the fourth highest in terms of quality on a scale of 22.

On Monday Prime Minister Naoto Kan said his government was working towards drafting a basic proposal by the end of June on overhauling the nation's tax and social security systems.

Japan's public debt is the industrialised world's biggest, at twice the size of the $5 trillion economy, with the welfare costs and revenue shortfall associated with a rapidly greying population adding further pressure.

The yen fell sharply against the dollar following the announcement, to 83.20 yen from around 82.12 yen in earlier trade before recovering back to the high 82 yen level. (AFP)

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

S&P downgrades Japan credit rating to AA

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Two racing drivers arrested over Fox Hill tragedy

Former MP Palitha Thewarapperuma dies from electrocution

New Visa procedure implemented

Ranil Wickremesinghe caravan moves on despite barking dogs

Street food vendor arrested for verbally harassing foreigner

SL on alert on possible genocide allegations by Canada

MIRROR CRICKET

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

TODAY'S HEADLINES

No footboard riding allowed, no liability for accidents: Railways Department

Six patients claim Rs.600 million from Keheliya and others for permanent loss of sight

SLPP, UNP initiates action for forming broad alliance

Here is the way!

Pakistan lose key players for last two T20Is against New Zealand

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident