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Japan Fitch Rating Revised to Negative


Japan had its outlook lowered to negative from stable by Fitch Ratings.

“Japan’s sovereign credit-worthiness is under negative pressure from rising government indebtedness,” saidAndrew Colquhoun, head of Fitch’s Asia-Pacific Sovereigns team, in a statement today. “A stronger fiscal consolidation strategy is necessary to buffer the sustainability of the public finances against the adverse structural trend of population ageing.”

Japan’s gross government debt reached 210 percent of GDP by end-2010, by far the highest ratio for any Fitch-rated sovereign, the ratings company said.