|
PureBytes Links
Trading Reference Links
|
Japan's
Credit Outlook Cut to `Negative' by S&P
Tokyo: Japan may have its credit rating cut by Standard & Poor's,
which criticized the government and the Bank of Japan for not doing enough
to revive the world's second-largest economy. Japanese bonds and the yen
fell.
S&P lowered the outlook on its ``AA+'' rating of Japan's long- term
debt to ``negative'' from ``stable.'' Last week, Moody's Investors Service
said it will review its ``Aa2'' rating of Japan's local currency debt --
one notch lower than S&P's -- for a possible downgrade.
The move increases pressure on Prime Minister Junichiro Koizumi to get
moving on pledges to reform the economy made when he took office in April.
The benchmark Nikkei 225 index has lost a quarter of its value since then
on investor doubt that he will cap bond issues, cut spending and force
banks to write off bad loans.
``The equity markets have already come to the conclusion that the
prospects for reform have diminished, and it's not particularly surprising
that the rating agencies have come to the same conclusion,'' said Richard
Jerram, a chief economist at ING Barings Securities (Japan) Ltd.
Yahoo! Groups Sponsor
<font
face=arial
size=-2>ADVERTISEMENT
You can, too! Start here...Height: 3
4
5
6
7
8
ft
0
1
2
3
4
5
6
7
8
9
10
11
in
Weight:
lbs.
kg.
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
|