leeanbriz

This disclaimer contains our obligations to you regarding our blog. Fisher Capital Management Investment strongly advises that you read this disclaimer in full before proceeding to use this blog. Using the Website implies that you accept the terms of this disclaimer. We do occasionally update this disclaimer so please refer back to them in the future.

1. USE OF WEBSITE

1.1 You are permitted to use our Blog for your own purposes and to print and download material from this Blog, provided that you do not modify any content without our consent. Material on this Blog must not be republished online or offline without our permission.

1.2 Subject to paragraph 1.1, no part of this Blog may be reproduced without our prior written permission.

2. VISITOR CONDUCT

2.1 With the exception of personally identifiable information, the use of which is covered under our Privacy Policy http://fishercapitalmanagementinvestment.com, any material you send or post to this Blog shall be considered non-proprietary and not confidential. Unless you advise to the contrary we will be free to copy, disclose, distribute, incorporate and otherwise use such material for any and all purposes.

2.2 When using this blog you shall not post or send to or from this Blog any material for which you have not obtained all necessary consents, is discriminatory, obscene, pornographic, def...

Fisher Capital Management Investment: Moody on Japan’s Credit Ratings
Posted on 10/10/2011 by fcminvestment

Last Wednesday, Japan’s debt rating was downgraded by Moody’s Investor’s Service to three levels below triple-A. However, Fisher Capital Management would have to insist that the outlook remains stable despite the country’s fear of experiencing crisis in the debt market.

The announcement was made few days before the ruling party was due to select the sixth prime minister within the last five years. This adds up the pressure of the political leaders to make drastic measures to improve the country’s finances.

Moody’s reasoned out that the cut to Japan’s government bond rating was due to the build-up of debts with large budget deficits since the 2009 global recession.

But it seems that Moody’s ratings is far better than other major ratings companies, like the Fitch and Standard & Poor’s Ratings, which rate Japan’s debt double-A-minus. These companies further add a negative outlook for the government’s finances.

As the U.S. gets more criticisms on its finances, so does Japan which is the world’s third largest economy. However, Japan is way down below the financial stability of the U.S., being downgraded from triple-A earlier this month by the S&P. Japan’s central government gets its annual budget from bond issuance, whose gross debt increased to more than 200% of the gross dome...