US ratings agency out with the news a short while ago. Livesquawk reporting

  • previously AA-/A-#1
  • economic support for Japan's sov creditworthiness has continued to weaken in the past 3-4 years
  • despite showing initial promise the government's strategy to revive economic growth and end deflation appears unlikely to reverse this deterioration in the next 2-3 years
  • we are lowering our sovereign credit rating
  • long-term outlook is stable

USDJPY nudging higher again at 120.41 on the warning shot across the bows of Abenomics but offers still prevailing at 120.50