No change to Japan's credit rating
Fitch says the rating balances the strengths of an advances and wealthy economy against weak medium-term growth prospects and very high public debt. The negative outlook reflects continues downside risks to the economic and fiscal outlook due to the pandemic shock.
They estimate Japan contracted 5.3% in 2020 but will rebound 3.5% this year and 1.5% in 2022.
They highlight that unemployment barely nudged higher during the pandemic as a positive but pegs debt-to-GDP at 245.8%.
Meanwhile, the market continues to not care whatsoever and is lending to Japan for 30-years at 0.664%.
