Japan's credit rating has been cut to ‘negative' by Moody's on debt level concerns.
The rating agency has warned the Japanese government to do more to cut borrowing levels, which have increased as ministers increase spending in attempt to boost economic growth.
Moody's said that it cut its outlook on the credit rating on Japan because of "heightened concern that economic and fiscal policies may not prove strong enough to achieve the government's deficit reduction target", the BBC reports.
Also the government's policies would probably not be able to "contain the inexorable rise in debt, which already is well above levels in other advanced economies".
The credit rating has been cut from ‘stable' to ‘negative' and the debt is rated at an Aa2 level.
Earlier in February, Japan was overtaken by China as the world's second-largest economy and earlier in the year Moody's rival agency, Standard & Poor's, downgraded Japan's credit rating from AA to AA-.
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