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Japan: credit rating downgraded

Japan: credit rating downgraded
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Fitch Ratings have downgraded Japan’s credit rating by one notch to A, which is five notches below the top AAA rating.

The move comes after the government failed to take steps in this fiscal year’s budget to offset a delay in a sales tax increase the agency said.

It follows similar action by Moody’s Investors Service last December and could pressure the government to take tough measures which it’s believed will be included in a fiscal plan due to be released around June.

“The details of the strategy will be important but the government’s strength of its commitment will be even more important,” the agency stressed.