S&P affirms Japan debt rating but warns of cut if yen weakens much further

S&P Global Ratings has affirmed Japan's sovereign debt rating at A+/A-1 but warned of a potential downgrade if the yen continues to weaken. The agency noted that Japan's economic competitiveness is deteriorating, which could lead to a widening fiscal deficit due to increased spending on investment and stimulus. S&P emphasized that a significant and persistent decline in Japan's economic growth compared to other high-income economies could trigger a rating cut.