Economics
Japan Rating Cut by S&P as Abe Falls Short of Early Promise
- S&P sees little chance of Japanese revival anytime soon
- China, South Korea are now both rated higher than Japan
Japan's Credit Rating Cut to A+ From AA- By S&P
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Standard & Poor’s cut Japan’s long-term credit rating one level to A+, saying it sees little chance of the Abe government’s strategy turning around the poor outlook for economic growth and inflation over the next few years.
The move comes just a day after the Bank of Japan refrained from boosting record asset purchases, betting there will be a resumption in growth and inflation. That’s left the onus on Prime Minister Shinzo Abe and his Cabinet to consider a fiscal stimulus package to boost what evidence indicates is a lackluster recovery in the second half of the year so far.