RTTNews - Thursday, Moody's Investors Service said the increase in Japanese government debt to fund its stimulus spending to combat the worse recession since the end of World War II will not for now undermine the government's solvency.
According to Senior Vice President in Moody's sovereign risk group, Thomas Byrne, the government bond rating was mainly supported by the special features of the Japanese system, which make it affordable despite its exceptional size and the increase in such debt does not have adverse implications for solvency in the near to medium term.
Earlier in the week, the rating agency had unified the government of Japan's local and foreign currency bond ratings at Aa2. In addition, it placed ratings of 26 Aaa-rated and Aa1-rated government-related issuers, regional governments and local governments under review for possible downgrade.
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