Crisis hits Japan again and banks are downgraded.
Fitch Ratings revises outlook for major Japanese institutions to "negative" following Japan's downgrade of its long-term debt rating.
247 – The crisis seems to have returned to Japan. Proof of this is the news that the Fitch ratings agency has revised the outlook for the country's main banks to "negative." The decision is a consequence of the reduction in Japan's long-term debt rating.
The review affected institutions from the country's three main financial groups: Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui Financial Group. Fitch maintained the "A" rating for all institutions as long-term issuers, but revised its outlook to "Rating Watch Negative".
The reason given by the agency for the review was "the government's reduced flexibility in providing financial assistance to banks when needed."
On Monday the 22nd, the agency downgraded Japan's long-term debt rating by two notches to "A+", citing the country's high level of debt, which is equivalent to more than its Gross Domestic Product (GDP).