Go Finance Reporting in Tokyo - Rating agency Moody's International Services lowered Japan's foreign debt outlook to "negative". This decision is based on the assumption that the State government Sakura considered not strong enough to overcome the deficit.
Moody's decision is expected to press the government of Prime Minister Naoto Kan that in recent months his popularity goes down. This is the second time Japan's debt rating lowered after last month. Other rating agencies namely Standard & Poor's (S & P) also cut its rating of Japan for the first time since 2002.
At that time Japan's S & P rate loss strategy that will go in an effort to alleviate the amount of government debt. Moody's previously maintains outlook "stable" with a rating of "AA2" which is the third highest ranking of the 19 measurement scale debt rating.
"(Decrease) rating is the action of growing attention on economic and fiscal policies are not strong enough from the government, including targets to reduce the deficit. Japan currently has a debt above the level of other developed countries," said Moody's said in a statement quoted by AFP, Tuesday (02/22/2011).
Just to note, the current debt on the world's largest industrialized countries it reaches 200 percent of gross domestic product (GDP) after the government pumped trillions of yen into the economy to help the ailing economy as the global financial crisis. However, rapid population aging and the deflation that continues to happen, making Japan's economy remains weak so that the policy makers to prevent discharge of the loan. (GoFinance)
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