23 May 2012

Japan credit rating downgraded

1:19 pm on 23 May 2012

Japan's credit rating has been downgraded over concerns about the country's high levels of debt.

The Fitch agency cut Japan's rating from AA to A+ and warned there may be further downgrades.

Fitch says Japan's plans to restrict government spending looks leisurely relative even to other fiscally-challenged high-income countries, while its implementation is subject to political risk.

Japan has by far the highest debt to GDP ratio of any major economy, although much of this debt is held by domestic investors.