TOKYO (AP) — Moody's downgraded the Japanese government's credit rating in the wake of the Prime Minister Shinzo Abe's decision to delay an increase in sales tax.
The ratings agency said Monday the debt rating was lowered by one notch.
Its statement cited "heightened uncertainty" about the government's ability to meet its debt reduction goals and uncertainty about the timing and effectiveness of measures to boost growth.
Japan's has the heaviest debt burden among developing nations.
Japan raised its sales tax in April and planned another increase next year. But that has been delayed after the economy slipped into recession in the third quarter.
The downgrade lowers Japan's rating to Aa3 from A1.