Wednesday, 27th April 2011
In Business In Japan,
S&P cuts Japan's sovereign credit rating
International credit ratings agency Standard & Poor's (S&P) has downgraded Japan after weighing up the cost of earthquake reconstruction efforts.
S&P had already cut Japan's credit rating in January, saying that the government was not doing enough to handle the national debt, which is currently estimated at twice its $5 trillion (£3 trillion) GDP, Reuters reported.
Japan is now rated as AA minus by S&P, which makes for its lowest rating among the major international agencies.
The report estimates that reconstruction efforts, following last month's giant earthquake, could total $613 billion.
This news, which may worry those with interests in Japanese business, comes in the same week that the Office for Economic Co-operation and Development (OECD) revised its economic estimates for Japan.
The OECD now predicts that the Japanese economy will grow by just 0.8 per cent in 2011 and 2.3 per cent in 2012.
Written by Mark Smith