::Standard & Poor's: Negative Outlook Japan!>>

Go Finance Reporting in TOKYO - rating agency Standard & Poor's revised the outlook for long-term rating on Japan to be negatively associated with post-disaster recovery that is expected to cost up to $ 600 billion.

"We revised the outlook for Japan's long-term rating to negative reflecting potential downgrade if the fiscal decline exceeds estimates, the absence of greater fiscal consolidation," remarked the S & P said in a statement, quoted by AFP on Thursday (04/28/2011).

This world-class rating agency also confirmed the long-term sovereign credit ratings of Japan fell to the level of AA-. Known, Japan is likely to require reconstruction costs due to the earthquake and tsunami amounted to $ 600 billion.

S & P itself reveals the cost of Japan's development back from 20 trillion to 50 trillion yen (USD245 billion to USD612 billion). Revealed, 30 trillion yen was allocated for the center, if no action to increase revenue, such as a tax increase.

In addition, S & P warned that the projection of listed companies "must" because of the ongoing developments in nuclear power plants Fukishima, where workers struggled to cool the reactor and spent fuel rods to prevent the crisis or further radiation leaks.

For your information, the reconstruction cost of Japan's massive earthquake and tsunami is believed to be approved at $ 600 billion, which revised its outlook on sovereign debt to negative.

The disaster occurred on March 11 and devastated whole towns on the northeastern coast and triggered a nuclear crisis. Nevertheless, it will not harm Japan's medium-term growth potential.

"Standard & Poor's estimates that the costs associated with March 11 2011 tsunamis, earthquakes, and nuclear power plant disasters will improve Japan's fiscal deficit above previous estimates that 3.7 percent of GDP cumulatively through 2013," said S & P said in a statement.

This condition is also estimated that the deficit could rise to 145 percent of GDP in financial year ended March 31, 2014, compared with a previous forecast of 137 percent. (GoFinance)