RTTNews - Moody's rating agency on Wednesday downgraded the ratings of 13 Japanese government related issuers or GRIs to Aa2 from Aaa. The outlook on 11 of the GRIs are stable, while the outlook is negative for the remaining two.
The two GRIs with negative outlooks are the Development Bank of Japan Inc. and Shoko Chukin Bank, Ltd.
This is the conclusion of the rating review initiated by Moody's on May 18. The report said the rating action reflects Moody's reassessment of the level of public-sector support anchor in accordance with the unification of the Japanese government's local and foreign currency bond ratings at Aa2. Japan's domestic currency bond rating was upgraded from Aa3, while the foreign currency bond rating was downgraded from Aaa.
The unification of the ratings was prompted by Moody's reassessment of the priority of payments which the government might choose to assign to its various obligations, if it were unable to finance them all on a timely basis.
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