The rating agency Standard and Poor's (S & P) lowered, Wednesday, April 27, the prospect of the rating the long-term debt of Japan. It changes from "stable" to "negative," S & P believes that the cost of the earthquake of March 11 would exacerbate the Japanese heavy deficit. The agency, however, maintains its long-term sovereign rating to AA-, the fourth best score possible on a total of 22, which corresponds to a transmitter of high quality.
Due to costs related to the disaster of 11 March and the crisis in the Fukushima nuclear power plant, the deficit will exceed "2014 8% of GDP, not 2013 as was previously estimated "says S & P said in a statement. "Standard & Poor's expects that the cost to the earthquake and tsunami of March 11 and the catastrophe at the Chernobyl dig up the deficit in Japan," says the rating agency.
It provides for reconstruction costs between 20 000 and 50 000 billion yen (167 and 417 billion euros). "Given the developments in the nuclear Tepco, we believe that projections are uncertain. Much will depend on the ability of the Japanese government to create a political consensus on how to make fiscal adjustment measures the future, "suggests S & P.
The secretary general of the Japanese government, Yukio Edano, promised that Tokyo would do everything to restore confidence in government bonds. Shortly after the announcement of S & P, the yen plunged and the dollar rose to 81.781 yen (0.68 euro). But according to analysts, estimates of the rating agency should not have much impact on the market.
Since the earthquake, the government has allocated an initial budget extension of 4,000 billion yen (33 billion), funded by savings from various jobs, but has already found it necessary a second extension, which will build this Once on the issuance of bonds. Naoto Kan of the government is considering raising taxes but on this taboo subject, no decision has been taken.
He must also contend with the conservative opposition that can block its projects through which it holds a majority in the upper house of Parliament. 
Due to costs related to the disaster of 11 March and the crisis in the Fukushima nuclear power plant, the deficit will exceed "2014 8% of GDP, not 2013 as was previously estimated "says S & P said in a statement. "Standard & Poor's expects that the cost to the earthquake and tsunami of March 11 and the catastrophe at the Chernobyl dig up the deficit in Japan," says the rating agency.
It provides for reconstruction costs between 20 000 and 50 000 billion yen (167 and 417 billion euros). "Given the developments in the nuclear Tepco, we believe that projections are uncertain. Much will depend on the ability of the Japanese government to create a political consensus on how to make fiscal adjustment measures the future, "suggests S & P.
The secretary general of the Japanese government, Yukio Edano, promised that Tokyo would do everything to restore confidence in government bonds. Shortly after the announcement of S & P, the yen plunged and the dollar rose to 81.781 yen (0.68 euro). But according to analysts, estimates of the rating agency should not have much impact on the market.
Since the earthquake, the government has allocated an initial budget extension of 4,000 billion yen (33 billion), funded by savings from various jobs, but has already found it necessary a second extension, which will build this Once on the issuance of bonds. Naoto Kan of the government is considering raising taxes but on this taboo subject, no decision has been taken.
He must also contend with the conservative opposition that can block its projects through which it holds a majority in the upper house of Parliament.
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