S&P Affirms Japan Rating but Flags Potential Weak Yen Cut

S&P Global Ratings has affirmed its sovereign debt rating for Japan, though it cautioned that a further decline in the value of the yen could lead to a future downgrade. The agency noted that this potential shift would reflect a decline in the nation's overall economic competitiveness.

The credit-rating firm maintained its A+/A-1 rating, expressing confidence that nominal gross domestic product and revenue growth will remain stable despite current geopolitical risks. However, the agency also pointed out that the fiscal deficit could expand during the next two years as the government increases spending on various investment and stimulus initiatives.