On Wednesday, the rating agency Fitch downgraded two steps, to “A +”, the note of the long-term debt of Japan, the country’s massive debt, which amounts to more than double the gross domestic product (GDP).
The new note is accompanied by a Japanese perspective “negative”, which means that after two years could be lowered again.
The note “A +” ranks fifth in the scale of Fitch notes that features 22 levels and corresponds to a “solid sender likely to be affected by changes in the economic situation.”
That same Wednesday, in its semiannual forecast, the Organization for Economic Cooperation and Development (OECD) indicated that Japan’s GDP would grow by 2% in 2012 before falling 1.5% in 2013.
“The downgrade and negative outlook reflect the increased risks weighing on the borrower profile of Japan, because of the growing importance of debt,” said Andrew Colquhoun, responsible Fitch rating of States to Asia-Pacific in a statement.
“The plan of fiscal consolidation of the country seems sluggish, even compared to other developed countries under budgetary pressure and the implementation of this plan is subject to political uncertainties,” says the analyst.
Fitch noted that gross indebtedness of the Japanese authorities will rise to “239% of its gross domestic product by the end of 2012, with much higher rates of all countries that qualify,” the agency said.
Nippon government, which finances more than half its budget by issuing new debt, deposited in Parliament in late March a bill that aims to increase the consumption rate to finance the social protection system and contain the colossal debt of the third world economic power.
The project advocated by the center-left prime minister, Yoshihiko Noda, provides that the excise tax, currently 5%, go to 8% in April 2014 and 10% in October 2015.
But opposition from conservatives and part of the field itself becomes uncertain Noda adoption of this text.
The growing indebtedness of the country and has caused the other two major rating agencies questioned also about the financial soundness of the authorities Nipponese: Moody’s lowered the rating a notch to Aa3 (4 th best mark 19, outlook stable) last August, and Standard & Poor’s placed its estimate at AA-(4th best of 22) with a negative outlook in April 2011.
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