S&P downgrades outlook for Japanese debt

clock

Standard & Poor's has cut Japan's sovereign rating outlook to 'negative' following the devastation caused by last month's earthquake and tsunami.

The ratings agency, which slashed its rating on the US to the same level two weeks ago, has downgraded the country's sovereign debt because of the impact the crisis will have on its debt pile. Japan is already the most indebted of the developed nations, and S&P expects the cost of rebuilding could go as high as 50 trillion yen (£372bn). The agency also warned if Japan's debt levels continue to rise, it could take further action. "We revised the outlook on the long-term rating on Japan to negative, to reflect the potential for a downgrade, if fiscal deterioration materially exceeds ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Analysts split over Reeves' role in UK gilt chaos as US bonds follow suit

Analysts split over Reeves' role in UK gilt chaos as US bonds follow suit

Investors looks for a culprit

Sorin Dojan
clock 10 January 2025 • 2 min read
Chris Justham: WPS - wrestlemania portfolio solutions

Chris Justham: WPS - wrestlemania portfolio solutions

'There has been a not-so-quiet change to how communication is happening'

Chris Justham
clock 09 January 2025 • 4 min read
Gilt yields hit record highs as bond sell-off intensifies

Gilt yields hit record highs as bond sell-off intensifies

Yields on 30-year government gilts reach highest level since 1998

Jonathan Stapleton
clock 09 January 2025 • 1 min read