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Fitch affirms Japan at A, cuts outlook to negative

Staff writer ▼ | June 14, 2016
Fitch Rating affirmed Japan's credit rating, but lowered the rating outlook, citing reduced confidence over the government's commitment to fiscal consolidation.
Shinzo Abe
Economy in Asia   Japan outlook was cut from "stable"
Japan's Long-Term Foreign- and Local-Currency Issuer Default Ratings were affirmed at A, the agency said in a statement. The outlook was lowered to "Negative" from "Stable".

On June 1, the Japanese government, led by Prime Minister Shinzo Abe, decided to delay a scheduled increase in the consumption tax from April 2017 until October 2019. This was the second time the move was postponed from its original date of October 2015.

Fitch pointed out that the government failed to identify any offsetting measures.

"The Outlook revision primarily reflects Fitch's decreased confidence in the Japanese authorities' commitment to fiscal consolidation," the agency said.