Japan unlikely to launch stimulus package: S&P

Tokyo

JAPAN's government is unlikely to be able to launch a stimulus package to support its struggling economy without raising concerns about the size of its spending, ratings agency Standard & Poor's said on Wednesday.

Faced with a flagging economy, Japan is laying the groundwork for new government spending to pre-empt any weakness in household consumption, which would add to its already heavy debt burden.

S&P cut its rating on Japan from AA- to A+ in September, which is four notches below its top rating of AAA, because it doubts the government can reverse the country's economic deterioration. The agency also raised its outlook to stable from negative. "The size of any stimulus will have to be carefully calibrated. At this point, I don't think the government can put out a package big enough to support the economy without triggering concerns,"…