S&P snubs Abenomics by downgrading Japan's credit rating

Tokyo

JAPAN's Abenomics received an effective slap in the face on Wednesday as rating agency Standard & Poor's downgraded the country's sovereign credit rating by one notch, citing relative lack of progress in reviving economic growth and ending deflation in the world's third largest economy.

The downgrade from double A minus to A plus followed a similar move by rival rating agency Moody's last December. While the move was not unexpected, it underlined the problems facing Japan as it struggles to cope with a huge burden of government debt.