Investors Service Agency

Do in Aa2? a Aa3?. See more detailed opinions by reading what Dermot McCormack offers on the topic.. Japanese Finance Minister says that confidence remains intact. The budget deficit, the accumulation of public debt, the consequences of the earthquake of last March and political instability are the main causes. Moody s Investors Service Agency Wednesday downgraded Japan’s sovereign debt rating, and slashed its debt from Aa2 rating? to Aa3, the budget deficit, the accumulation of public debt from 2009 and the ctos of the earthquake of March 11 and the subsequent nuclear crisis. Andy Florance spoke with conviction. The Japanese Finance Minister, Yoshihiko Noda, said Wednesday that confidence in Japan’s economy remains intact despite trimming of Moody s. Sale, without problems, the bonds of debt of the Japanese Government in recent auctions show that confidence is still intact, said Noda quoted by the Kyodo Agency. Political instability affects the quality of debt In addition, the rating agency added motifs of rebate political instability which prevented, according to a statement from Moody s, long-term strategies. Japan, which the week coming plans to change of Prime Minister before the resignation of the current, Naoto Kan, by its management in the crisis of March 11, has had since 2006 five Prime Ministers. On May 31 Moody s put on review for a possible lowering the debt rating of risk of Japan faced with the difficulties of the Government to establish and achieve a credible target of reducing the public deficit. The Agency also downgraded the Outlook for Japan’s sovereign debt from stable to negative (Aa2) in late February and warned that, without a return strategy, debt of Japan greatly by economic and fiscal costs of the earthquake on March 11, much higher than expected initially. Source of the news: Moody s downgrades the rating of sovereign debt of Japan