S&P Affirms Japan’s AA- Credit Rating With Negative Outlook

Standard and Poor’s affirmed Japan’s sovereign-debt rating at AA- while maintaining a negative outlook and warning that a downgrade is likely if medium-term growth prospects weaken.

The ranking is supported by an “ample net external asset position, relatively strong financial system, and diversified economy,” S&P said in a statement today, also citing the yen’s role as a “key international reserve currency.” S&P has cut the ratings of European nations including France and Italy this year, along with reducing both the U.S. and Japan last year.