credit rating

‘s cuts Japan rating, blames politics

by

(Reuters) – Moody’s Investors Service cut its rating on Japan’s government debt by one notch to Aa3 on Wednesday, blaming a build-up of debt since the 2009 global recession and revolving-door political leadership that has hampered effective economic strategies. Japan is preparing to elect its sixth leader in five years to replace unpopular Prime Minister Naoto Kan, under fire for his handling of the response to a March tsunami and subsequent radiation crisis at a crippled nuclear power plant. The downgrade, while not out of the blue, served as another reminder of the debt burdens that nearly all of the … Read more

Fitch keeps U.S. AAA rating, review ongoing

by

(Reuters) – Fitch Ratings said on Tuesday the agreement to raise the borrowing capacity of the United States means the risk of a sovereign default is “extremely low” and commensurate with a AAA rating. However, Fitch pointed out that without significant changes in fiscal policy the U.S. debt to gross-domestic product ratio “will reach 100 percent by the end of 2012, and will continue to rise over the medium term – a profile that is not consistent with the United States retaining its AAA sovereign rating.” The firm said it expects to conclude its scheduled review of the U.S. sovereign … Read more