Moody's cuts Japan debt rating

Ratings agency Moody's downgraded Japan's credit rating by one notch Wednesday, blaming a build up of borrowing and revolving-door politics for delaying efforts to cut the world's largest debt. The downgrade of Japan's government bond rating to Aa3 from Aa2 came days before the nation was due to see its sixth new leader in five years, with Prime Minister Naoto Kan set to resign over his handling of the March 11 disasters.
While expected, the decision by Moody's put further pressure on a political leadership charged with safeguarding a recovery from the impact of the March 11 earthquake and tsunami, a surging yen and a slowing global economy. Moody's move also comes after the United States saw its top AAA rating cut by Standard & Poor's, amid growing fears for eurozone giants such as Italy and Spain, and puts Japan on a par with China.