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

According to Andrew Colquhoun, head of Fitch's Asia-Pacific sovereign team, in a statement released today, Japan's sovereign credit-worthiness is under negative pressure from rising government indebtedness.

A stronger fiscal consolidation strategy is necessary to buffer the sustainability of the public finances against the adverse structural trend of population ageing.

Fitch warned that the massive cost of a March earthquake and tsunami would put added strain on the country's already shaky public finances.

The Fitch move follows a similar downgrade by Standard & Poor's last month, April 28th.  After today's move by Fitch, all three rating agencies now have negative outlooks for Japan.

USD/JPY is currently trading at 81.10, relatively flat for the day.