Japan to Help Tepco With Fukushima Payouts; S&P Lowers Rating

Japan will provide aid to Tokyo Electric Power Co. to shield it from bankruptcy while Standard & Poor’s lowered its rating on the company’s debt as it faces a compensation bill for the worst nuclear disaster in 25 years.

Japan will create a body to handle claims against Tepco, as the company is called, and will issue bonds to fund them, according to a statement yesterday. As part of the aid, which may include taxpayers’ funds and purchase of shares in Tepco, Chief Cabinet Secretary Yukio Edano said lenders may be required to write off loans to the company.