The Wall Street Journal: Moody's Downgrades Japan's Credit Rating
TOKYO— Moody’s Investors Service downgraded Japan’s credit rating Monday, highlighting the challenges facing Prime Minister Shinzo Abe as he tries to stoke inflation and growth.
In explaining its move, Moody’s cited heightened uncertainty over Japan’s ability to cut its fiscal deficit after Mr. Abe decided last month to delay an increase in the national sales tax scheduled to take effect next year.
The difficulty of the balancing act facing the Japanese government—fueling growth while acting with fiscal responsibility—was reflected in the lower rating, Thomas Byrne, senior vice president of the sovereign risk group at Moody’s, told reporters in Tokyo after the announcement.