27 Apr 2015
Fitch downgrades Japan to ‘A’
FXStreet (Mumbai) - The rating agency Fitch on Monday downgraded Japan's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'A' from 'A+’.
The issue ratings on Japan's senior unsecured foreign and local currency bonds are also downgraded to 'A' from 'A+'. The Outlooks on the Long-Term IDRs are Stable. The Country Ceiling is downgraded to 'AA' from 'AA+' and the Short-Term Foreign Currency IDR is downgraded to 'F1' from 'F1+'.
Fitch says Japan did not include structural fiscal measures in its budget. The main reason is the high and rising level of government debt. Fitch also forecasts debt to reach 244% of GDP by end of 2015, while reducing their 2015 growth forecast to 1.35 from 1.5% in March.
The issue ratings on Japan's senior unsecured foreign and local currency bonds are also downgraded to 'A' from 'A+'. The Outlooks on the Long-Term IDRs are Stable. The Country Ceiling is downgraded to 'AA' from 'AA+' and the Short-Term Foreign Currency IDR is downgraded to 'F1' from 'F1+'.
Fitch says Japan did not include structural fiscal measures in its budget. The main reason is the high and rising level of government debt. Fitch also forecasts debt to reach 244% of GDP by end of 2015, while reducing their 2015 growth forecast to 1.35 from 1.5% in March.