Meta Platforms earnings missed by $5.63, revenue topped estimates
Investing.com -- Moody’s Ratings has affirmed Japan’s long-term local and foreign-currency issuer ratings and local-currency senior unsecured ratings at A1, maintaining a stable outlook.
The rating action reflects Japan’s progress on reflation and fiscal consolidation policies that have helped narrow the general government deficit. This progress has enabled a normalization of monetary policy at a pace that preserves strong debt affordability compared to peers, though this advantage is weakening.
The A1 rating and stable outlook account for expectations of a slow decline in Japan’s debt burden, which will remain high at over 200% of GDP throughout this decade. Moody’s expects domestic demand resilience to cushion negative impacts from deterioration in the global trading environment caused by shifts in US trade policy.
Japan’s local and foreign-currency country ceilings remain unchanged at Aaa. The four-notch gap between the local-currency ceiling and sovereign rating stems from the government’s relatively small economic footprint, strong institutions, robust external payments position, and diversified economy. The foreign-currency ceiling matches the local-currency ceiling due to Japan’s fully convertible capital account with no history of capital flow restrictions, along with effective policy management.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.