Standard & Poor's surprised markets by downgrading Japan's long-term sovereign debt one notch from AA to AA minus, citing the country's ballooning deficit, which it said will further reduce Tokyo's already restricted fiscal flexibility.
The move will have a limited impact on Japan's ability to raise money on financial markets but it raised a red flag with investors about other leading countries' fiscal imbalances.
"It is not a good sign.... A major economy like Japan being cut is not going to go down very well," said Mark Priest, senior equities trader at ETX Capital
No comments:
Post a Comment