Moody’s has moved to unify the govenment of Japan’s local and foreign currency bond ratings at Aa2, increasing its domestic currency bond rating (the JGB rating) from Aa3 and lowering its foreign currency bond rating from Aaa.
The outlook for the government’s ratings is stable. Japan’s foreign and domestic currency long-term bond ceilings and deposit ceilings remain unchanged at Aaa, and it’s short-term ceilings remain at Prime-1.
In addition the ratings of 26 Aaa-rated and Aa1-rated government-related issuers (GRIs), regional governments, and local governments were place under review for possible downgrade. Moody’s notes that the reviews are unlikely to lead to ratings for any of these entities below the government’s rating of Aa2.