S&P downgrades Japan

first_img Show Comments ▼ Tags: NULL Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautCheese Crostini: Delicious Recipes Worth CookingFamily Proof S&P downgrades Japan Rating agency Standard & Poor’s downgraded Japan’s long-term sovereign debt one notch from AA to AA minus , citing the country’s ballooning deficit, which it said will further reduce Tokyo’s already weak fiscal flexibility.Politicians and credit ratings agencies have been warning for years that Japan needs to lower its public debt pile, by far the worst among rich nations at double the size of its economy, but progress has proved elusive.“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,” S&P said in a statement.“Specifically, we expect general government fiscal deficits to fall only modestly from an estimated 9.1 per cent of GDP in fiscal 2010 (ending March 31, 2011) to eight per cent in fiscal 2013.”The yen fell broadly, with the dollar rising 1 percent on the day against the Japanese currency to a session high of 83.20, and 10-year Japanese government bond futures dipped.S&P said the outlook on the long-term rating was stable, reflecting its view that Japan’s strong external balance sheet and monetary flexibility partially offset the pressures stemming from the fiscal side.Japan’s outstanding long-term government debt is set to reach 869 trillion yen (£6.64 trillion) at the end of March this year, or 181 per cent of gross domestic product (GDP), the Ministry of Finance says.If short-term debt is added, Japan’s liabilities will hit 204 per cent of GDP this calendar year, larger than 137 per cent for Greece and 113 per cent for Ireland, according to the OECD. Thursday 27 January 2011 4:22 am Share whatsapp whatsapp John Dunne last_img

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