Fitch downgrades Japan's credit outlook

NHK -- Jul 29
Analysts at Fitch Ratings say the impact of the coronavirus pandemic has prompted them to cut their outlook for Japan's credit rating.

They say they've lowered the projection from "stable" to "negative."

The analysts say Japan's early success in containing the virus hasn't been able to stop a sharp economic contraction.

They say the decision to issue more deficit bonds in an effort to spur growth will lead to an increase in financial vulnerability.

Despite the change in outlook, the analysts kept their single A rating in place. That's the 6th-highest level. They cited Japan's current account surplus for that decision.

Ratings agency S&P also recently downgraded its debt outlook for Japan, lowering it from "positive" to "stable."