RAEX Downgrades Japan Sovereign Rating
OREANDA-NEWS. Expert RA Rating Agency (RAEX) downgraded Japan sovereign rating from A- ("High level of creditworthiness") to BBB+ ("Acceptable level of creditworthiness") in foreign and national currencies. Credit environment rating AA- ("Very high quality of credit environment") of the country in foreign and national currencies was also confirmed.
Sovereign rating and credit environment rating of Japan were positively influenced by reserve status of the national currency, long-term and internal character of government liabilities, low cost of public borrowings.
The Agency analysts highlighted extremely high level of debt burden, high budget deficit, zero economic growth and high deflation risks as the restraining factors for both ratings.
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