miackymini

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 domestic products.

Japan is rated above single-A, a level that forces pension funds to cease buying government bonds. Mo...