S&P downgrades outlook for Japanese debt

clock

Standard & Poor's has cut Japan's sovereign rating outlook to 'negative' following the devastation caused by last month's earthquake and tsunami.

The ratings agency, which slashed its rating on the US to the same level two weeks ago, has downgraded the country's sovereign debt because of the impact the crisis will have on its debt pile. Japan is already the most indebted of the developed nations, and S&P expects the cost of rebuilding could go as high as 50 trillion yen (£372bn). The agency also warned if Japan's debt levels continue to rise, it could take further action. "We revised the outlook on the long-term rating on Japan to negative, to reflect the potential for a downgrade, if fiscal deterioration materially exceeds ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

RBC Brewin Dolphin adds to Voyager range with passive funds

RBC Brewin Dolphin adds to Voyager range with passive funds

With six risk options

Patrick Brusnahan
clock 27 April 2026 • 1 min read
From 'passive versus active' to 'the best of both worlds'

From 'passive versus active' to 'the best of both worlds'

Factoring active managers' best ideas into systematic models

Lisa Wang
clock 27 April 2026 • 4 min read
AJ Bell posts record rise in platform flows as AUA hits £108.7bn

AJ Bell posts record rise in platform flows as AUA hits £108.7bn

Net flows up 42%

Cristian Angeloni
clock 23 April 2026 • 2 min read