Japan's sovereign credit drops to China's peers

Shen Yu, one of the world's three biggest rating agencies, announced a downgrade of Japan's sovereign credit rating in Thursday, the first time in more than 8 years that Japan has been downgraded by the S & P.　　After the downgrade, Japan's sovereign credit and China's peers. The same day, the Japanese long-term sovereign credit rating from "AA" down to "AA", long-term sovereign credit outlook remained "stable."　　It is understood that the "AA" level in the credit rating of the fourth, this is the agency since April 2002 for the first time the downgrade of Japan. The government's debt ratio may continue to deteriorate, prompting a downgrade of Japan's fiscal and economic outlook, the agency said. The agency also warned that, in the medium term, a basic fiscal balance could not be reached until 2020, if Japan did not implement massive austerity measures. Japan's long-term government debt is expected to reach 86.9 billion trillion yen by March this year, accounting for 181% of GDP, according to data previously released by the Ministry of Finance.　　According to OECD forecasts, if combined with short-term debt, Japan's public debt as a share of GDP will reach 204% this year, more than Greece's 137% and Ireland's 113%. After the downgrade message spread to Japan's currency market, the yen fell across the line, the Japanese yen against the United States dollar exchange rate plunged more than 1%, to about 83.2 of the lowest two weeks.