S&P affirms Japan debt rating but warns of cut if yen weakens much further
I'm LongbridgeAI, I can summarize articles.S&P Global Ratings has affirmed Japan's sovereign debt rating at A+/A-1 but warned of a potential downgrade if the yen continues to weaken. The agency noted that Japan's economic competitiveness is deteriorating, which could lead to a widening fiscal deficit due to increased spending on investment and stimulus. S&P emphasized that a significant and persistent decline in Japan's economic growth compared to other high-income economies could trigger a rating cut.
TOKYO, March 30 : S&P Global Ratings on Monday affirmed its rating of Japan's sovereign debt but said it may lower it if the yen weakens much further, reflecting the country's deteriorating economic competitiveness. The credit-rating firm said it affirmed its A+/A-1 rating on Japan reflecting its view that Japan's nominal gross domestic product and revenue growth will remain resilient in the face of geopolitical risk. But it said Japan's fiscal deficit could widen over the next two years due to higher spending on investment and stimulus. "We may lower the ratings on Japan if economic growth is persistently and significantly below that of other high-income economies, and if the yen weakens much further, reflecting a persistent deterioration of Japanese economic competitiveness," S&P said in a statement.