Tokyo – Fitch Ratings on Tuesday downgraded Japan to A+ and issued a negative outlook on the country’s credit rating, reflecting the risks posed by the continued growth of Japanese government debt. It should reach 239% of GDP by the end of the year.
This debt is by far the largest of all countries rated by Fitch.
Speaking in a press release, the rating agency said that Japan’s efforts to keep this high debt under control were “indolent.” They added, that low Japanese interest rates meant that the government could afford to borrow. Large foreign currency reservesof the country are also a positive factor.
The Japanese economic situation was compounded by an earthquake and tsunami last year.