Japan`s Credit Grade Is Likely Down 2 Steps

Moody`s Investors Service may degrade Japan 2 steps down soon.

Thomas Burton, vice CEO of Credit Rating, said that “the credit of yen, which is currently Aa3, is included in the items for a negative investigation, whose degrading is possible. Therefore, the credit of Japan may be degraded 2 steps. However, nothing is decided yet.” If the credit of Japan is degraded, it will be the same as the credit grade of Greek and Latvia. Previously, Moody`s recommended Japan “to implement more aggressive measures to overcome the stagnation of Japan`s economy.”

Young-Ee Lee yes202@donga.com