RTTNews - Thursday, the Fitch Ratings affirmed Japan's long-term foreign and local currency Issuer Default Ratings or IDRs at 'AA' and 'AA-', respectively. The outlook on the ratings is stable. Further, the agency affirmed the short-term IDR at 'F1+' and the country ceiling at 'AAA'.

James McCormack, head of Asia Pacific sovereigns at Fitch said, Japan's sovereign ratings reflect a balance between the country's exceptionally strong external balance sheet and its deteriorating public finance position, which is already among the weakest of the advanced economies.

The rating agency expects further decline in tax collection in FY2009/10 and forecasts the consolidated general government deficit to reach 8.4% of GDP in the calendar year 2009.

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