April 28 (Bloomberg) -- Yahoo Japan Corp. fell the most in two years in Tokyo trading after full-year profit was less than forecast and Credit Suisse Group cut its rating on the stock.

The shares fell 9.5 percent to close at 47,150 yen on the Tokyo Stock Exchange, the biggest drop since Jan. 18, 2006. The stock led declines on the MSCI World Index.

Yahoo Japan, one-third owned by Yahoo! Inc. of the U.S., reported net income of 62.6 billion yen ($598 million) for the year ended March 31, missing its forecast for 64.8 billion yen and up 8 percent from a year earlier. Operating profit was 124.8 billion yen, better than its 122.8 billion yen forecast, the Tokyo-based company said in a release after the stock market closed on April 25.

``The share price no longer looks inexpensive following recent gains,'' said Credit Suisse analyst Takashi Murakami, who cut his rating on the company to ``neutral'' from ``outperform'' in a report dated the same day as the earnings report.

To contact the reporter on this story: Gregory Turk in Tokyo at gturk2@bloomberg.net

Last Updated: April 28, 2008 02:48 EDT