Press Release|Sovereigns

KBRA Affirms AA-/K1+ Ratings for Japan; Stable Outlook

30 Nov 2023   |   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 ParticipationYes
With Access to Internal DocumentsYes
With Access to ManagementYes

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 policy mix and global macro conditions (including Yen depreciation) have elevated inflation, Japan’s longstanding deflationary tendencies still persist. The current environment with inflation exceeding the Bank of Japan target may facilitate an exit from unorthodox monetary policy reliance that already started with relaxing Yield Curve Control. While likely to be managed, risk of a destabilizing exit exists.

To access rating and relevant documents, click here.

Click here to view the report.



Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1002769

805 Third Avenue
29th Floor
New York, NY 10022
+1 (212) 702-0707
Contact Us

© 2010-2024 Kroll Bond Rating Agency, LLC. All Rights Reserved. Kroll Bond Rating Agency, LLC is not affiliated with Kroll Inc., Kroll Associates Inc., KrollOnTrack Inc., or their affiliated businesses.