RTTNews - Standard & Poor's Rating Services affirmed Japan's long-term local and foreign currency ratings at 'AA', reports said Wednesday. The firm also affirmed the corresponding short-term rating at 'A-1+'. The outlook on the ratings remain stable.

The rating agency said the decision reflects the view that Japan has the capacity to withstand fiscal pressures, as it has ample liquidity and a low interest environment.

Moreover, the ratings are supported by Japan's strong net asset external position, relatively strong financial system and a diversified economy, S&P noted. However, the strengths were offset by the country's large fiscal deficit and outstanding debt, and political stalemate that could adversely affect fiscal consolidation and structural reforms, it added.

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