Special Report: Outlook On Japan's Sovereign Rating Revised To Negative
- ID: 1714882
- April 2011
- Region: Japan
- Standard & Poors
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Research Type: Commentary
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OUTLOOK ON JAPAN SOVEREIGN CREDIT RATING REVISED TO NEGATIVE; RATINGS AFFIRMED AT 'AA-/A-1+' The negative outlook signals that a downgrade is possible if Japan's public finances weaken further over the next two years in the absence of fiscal consolidation to offset them. We believe that uncertainty over the country's fiscal and economic outlook will lessen over the next six to 24 months. If the government's debt trajectory remains on its current course or begins to erode the nation's external position, the long- and short-term ratings could be lowered. OUTLOOKS ON JAPAN'S OKINAWA EPCO, TOKYO GAS, AND OSAKA GAS REVISED TO NEGATIVE FOLLOWING SOVEREIGN OUTLOOK REVISION The ratings on Japan's electric and gas utilities are constrained by the long-term sovereign rating...