Fitch Ratings lowers Japan credit ratingApril 27, 2015 - 16:38 AMT PanARMENIAN.Net - Fitch Ratings has lowered Japan's credit rating as the country continues to wrestle with staggering debt, the Associated Press reports. Fitch said Monday, April 27, that the government did not include sufficient measures in its budget to replace a sales tax hike it put off in the current fiscal year, which ends next March. Japan's debt is the largest among developed nations and more than twice the size of its economy. The country eventually has to boost taxes to cover rising costs for health and elder care as the average age in the nation rises. But a sales tax increase last spring hurt consumer and business spending as the Japanese economy slipped into a recession. That led Prime Minister Shinzo Abe to put off a second, planned hike, illustrating the tough position in which government leaders have found themselves. Fitch said Monday that Japan's main credit and rating weakness is due to its high and rising level of government debt. The ratings agency noted that the government has already cut corporate tax rates and plans to do so again in fiscal 2016, according to the AP. "These developments increase Fitch's uncertainty over the degree of political commitment to fiscal consolidation," Fitch said, noting that Japan is set to unveil a new fiscal strategy this summer. "The details of the strategy will be important, but the strength of the government's commitment to implement it will be even more important and will only become clearer over time." Fitch downgraded Japan's long-term foreign and local currency issuer default ratings to "A'' from "A+." It also lowered its senior unsecured foreign and local currency bonds ratings to "A'' from "A+." Fitch said that strong credit fundamentals like a high-income, wealthy economy and social and political stability support Japan's ratings. Most of Japan's public debt is held by the Bank of Japan and other Japanese financial institutions, so it is considered relatively stable. Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | U.S. welcomes efforts to define Armenia-Azerbaijan border The United States welcomes efforts to define the border between Armenia and Azerbaijan, says Vedant Patel. Biden honors resilience of Armenian people on April 24 U.S. President Joe Biden has issued a statement on the 109th anniversary of the Armenian Genocide. Ex-Karabakh leader moved to solitary confinement cell in Baku, his son says David Vardanyan is the son of former Karabakh leader Ruben Vardanyan who who is currently imprisoned in Azerbaijan. Macron says France commemorates 109th anniv. of Armenian genocide Today France commemorates the 109th anniversary of the Armenian genocide of 1915, Macron says. |