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JPY Daily News
S&P Warns on Japanese Credit Rating
On Friday S&P said the Japanese administration has made no progress to reduce the nation's debt. This may be the first warning prior to a reduction of the Japanese sovereign credit rating. Comments from the sovereign ratings team at S&P said they are closer to a downgrade but the deterioration in Japan's public finances has been gradual. Currently Japan is able to borrow in the capital markets at ultra-low rates.
While a downgrade of Japan's credit rating may be considered a slap in the face, one only has to look at the move by S&P to downgrade the US. Despite the US losing its AAA rating from S&P the US still maintains the ability to borrow at low interest rates. This may not be due to the creditworthiness of the US but rather a lack of investment grade sovereign debt available in the world. With problems in the European debt markets a downgrade of the Japanese credit rating should not materially affect Japan's ability to borrow, nor should it affect the value of the JPY.
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Print| # | Time | $€£¥ | Event | Per. | Prev. | Fore. | Act. | Imp. |
|---|---|---|---|---|---|---|---|---|
| 11/28 | ||||||||
| 02:30 | JPY |  BoJ Governor Shirakawa Speaks | * | * | * |  | ||
| 23:30 | JPY | Household Spending | y/y | -1.9% | -1.4% | -0.4% |  | |
| 23:30 | JPY | Unemployment Rate | 4.1% | 4.2% | 4.5% | | ||
| 23:50 | JPY | Retail Sales | -1.1% | 0.8% | - | | ||
