Japan Downgraded by Fitch to A

Fitch Ratings downgraded Japan’s credit rating by one notch after the government failed to take steps in this fiscal year’s budget to offset a delay in a sales tax increase, the agency said on Monday.

Fitch cut its rating on Japan by one notch to A, which is five notches below the top AAA rating. The outlook is stable.

A plan to lower the corporate tax rate also increases uncertainty about whether the government will generate enough revenue to address its debt burden, Fitch said in a statement.

Last year Moody’s Investors Service downgraded Japan to A1, which is one level above Fitch’s rating, due to the delay in the sales tax increase

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza