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Fitch Affirms Japan at 'A'; Outlook.........>

RATINGS
RATINGS: Fitch Affirms Japan at 'A'; Outlook Stable
- Fitch deem that "Japan's ratings balance the strengths of an advanced and
wealthy economy, with high governance standards and strong public institutions,
against weak medium-term growth prospects and high public debt. The country has
strong external finances marked by a persistent current account surplus and
large net external credit and international investment positions relative to
peers."
- Improving economic trends and faster nominal GDP growth are helping to keep
the trajectory of Japan's public debt in check. Over the medium-term, however,
Japan still faces the difficult challenge of sustaining GDP growth and staving
off deflation due to its rapidly ageing population and declining labour force.
- On the external front, trade protectionism poses a downside risk to the
outlook, exemplified by the imposition of a 25% tariff on US imports of steel
and aluminium, including from Japan. Spillovers from trade tensions between the
US and China are also a risk, as are tensions on the Korean peninsula.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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