After the downgrade of the credit rating of the United States, another major economic superpower is seen to be following suits as Japan is the next in line. Moody’s Investors Service has downgraded Japans’ credit ratings from Aa3 to Aa2. The agency said that this was due to the weak growth prospects of the country as well as its massive government debt and its uncertainties of the country’s political climate.
This means that the county is now 3 steps further from reaching the top rating by Moody which is Aaa. According to Moody, the move was widely due to the recent developments in the leadership of the government where the Prime Minister Naoto Kan and his cabinet is on the verge of collapsing which will mean that another leader might be elected very soon. If that happens, it would mean that Japan will get a sixth prime minister in the last 4 years.