Global rating agency Moody's Investors Service Monday downgraded Japan's sovereign credit rating by one notch from "Aa3" to "A1," citing growing doubts over the success of "Abenomics," Prime Minister Shinzo Abe's economic revitalization policies.
The outlook is stable, Moody's said in a release.
The "A1" rating is one notch lower than South Korea and Taiwan, and on the same level as Israel, the Czech Republic and Oman.
Primary reasons for the downgrade included "heightened uncertainty over the achievability of fiscal deficit reduction goals," "uncertainty over the timing and effectiveness of growth enhancing policy measures, against a background of deflationary pressures" and increased risk of rising JGB yields and reduced debt affordability over the medium term," Moody's said.
The downgrade is the first for Japan since August 2011.
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