Moody's Investors Service has today affirmed the Government of Japan's issuer rating at A1. The rating outlook is maintained at stable.

The affirmation reflects:

• The slow but continuing progress in developing a policy and reform framework which could ultimately reflate the Japanese economy and reverse the rise in government debt.

• Our expectation that funding costs for the government will remain low and stable.

Moody's notes that the recent waning of economic momentum has prompted a pause in fiscal policy tightening, which we expect to lead to a rise in the Japanese government's debt burden. However, we expect that Japan's credit profile will continue to be consistent with an A1 rating, and the rating outlook remains stable.