KBRA Affirms AA-/K1+ Ratings for Japan; Stable Outlook
20 Dec 2024 | New York
KBRA affirms Japan’s long-term issuer ratings of AA-. KBRA also affirms the short-term issuer ratings of K1+. The Outlook on the long-term ratings is Stable.
| This credit rating is an unsolicited credit rating. | |
|---|---|
| With Rated Entity or Related Third-Party Participation | Yes |
| With Access to Internal Documents | Yes |
| With Access to Management | Yes |
KBRA’s affirmation of the ratings reflects Japan’s large, wealthy and institutionally advanced economy, external account strength, and strong access to liquidity. The ratings also consider the government’s large debt, as well as demographic, GDP growth and medium- to long-term deflation challenges, although the economy is currently at an encouraging inflection point with regards to growth and inflation. The policy mix and global macro conditions (including Yen depreciation) have led to sustained above target inflation and has assisted wage growth. The ability to continue to generate wage and consumption growth, and in turn, government revenues growth, is key to the sustainability of the new monetary policy thrust. While likely to be managed, risks exist for an unstable or challenging transition.
To access ratings and relevant documents, click here.
Click here to view the report.