Fitch Ratings have affirmed Japan at 'A'; outlook stable

  • Affirmed Japan's long-term foreign-currency issuer default rating (idr) at 'a' with a stable outlook
  • a high domestic savings rate and home investor bias contribute to economy's external resilience
  • economy's intrinsic financial strengths could erode over time in absence of reforms to boost potential growth, address public debt burden
  • Japan's ratings balance strengths of advanced and wealthy economy, with high governance standards and strong public institutions
  • spillovers from trade tensions between US and China are also a risk, as are tensions on Korean peninsula
  • trade protectionism poses downside risk to outlook, exemplified by imposition of a 25% tariff on US imports of steel and aluminium