Japan Risks Rating Cut as Kan Fails to Galvanize Fiscal Plan
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Japan faces the rising risk of a reduction in its sovereign-debt rating as Prime Minister Naoto Kan struggles to assemble the political support needed to craft a plan for paring the world’s largest public debt burden.
Fitch Ratings yesterday joined Standard & Poor’s and Moody’s Investors Service in lowering its outlook to negative for the nation’s sovereign rating, which is the fourth-highest grade at Fitch and S&P and third highest at Moody’s. Fitch urged a credible plan to address long-term government finances even as Japan rebuilds from the March 11 earthquake and ensuing tsunami.