Japan: financial

Brad Mayer bradley.mayer at ebay.sun.com
Fri Jan 12 16:27:16 PST 2001


Friday, January 12 11:20 AM SGT

Moody's:Over 50% Chance Of Japan Outlook Review Within 2Y

TOKYO (Nikkei/Dow Jones)--Moody's Investors Service Inc. will likely review its 'negative' outlook on Japan's debt rating in the direction of a downgrade within two years, the Nihon Keizai Shimbun reported in its Friday morning edition.

Vincent Truglia, managing director of Moody's sovereign risk unit, told the newspaper in an interview there was over a 50% chance that the rating agency would review its rating, which it cut in September for the second time in two years.

Truglia noted that the ratio of Japan's public debt to gross domestic product - which is approaching 130% - was now the highest among developed nations.

He said the weakening state of the economy should be closely watched.

However, with no sign of public funds shifting overseas from the Japanese government bond market, Truglia said that Moody's rating on Japan remains on the high side, the newspaper said.

In September, the agency lowered its rating on Japanese government debt a notch to Aa2, with a negative outlook.

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"You my win the rat race, but you're still a rat"

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