Moody's cuts Japan's sovereign rating
24 August 2011 03:29 am
TOKYO: Ratings agency Moody's downgraded Japan's sovereign rating by one notch on Wednesday, heaping more pressure on the country's political leaders to address the industrialised world's largest debt.
Moody's cut Japan's government bond rating to Aa3 from Aa2, citing "large budget deficits and the build-up in Japanese government debt since the 2009 global recession" compounded by weak post-quake growth prospects.
The new rating puts Japan on a par with China. Moody's said the outlook was stable, after warning in May that it might downgrade Japan over concerns over policy responses to the massive debt. (AFP)