Japan’s Credit Ratings May Hinge on BOJ Policy Changes, S&P Says
- Probably ‘the most important factor’ determining ratings
- Speculation for monetary policy adjustment has been building
The Bank of Japan headquarters in Tokyo.
Photographer: Toru Hanai/BloombergThis article is for subscribers only.
Bank of Japan policy may become the most crucial element in deciding the nation’s creditworthiness, S&P Global Ratings said, suggesting the central bank’s action has the potential to trigger its first sovereign credit rating change in years.
“The risks of policy changes or no policy changes are both quite high right now,” Kim Eng Tan, primary Japan credit analyst, said in an interview. “Therefore, this is probably the most important factor that could determine the rating triggers.”