Header and navigation menu

Page content

Japan’s Stimulus Package Adds to Fiscal Risks

Japan’s latest fiscal stimulus package could increase risks to the ‘A’/Stable sovereign rating if it represents a significant loosening of fiscal policy over the medium term and puts upward pressure on the government debt/GDP trajectory, a key rating driver. However, the effect on fiscal metrics remains unclear at this stage, and the announcement follows a relatively strong recent fiscal performance that has given Japan additional headroom at its current rating level. [....]