http://www.france24.com/en/20110824-moodys-downgrades-japan-debt-rating?ns_campaign=nl_quot_en&ns_mchannel=email_marketing&ns_source=NLQ_20110824&f24_member_id=&ns_linkname=node_5236357&ns_fee=0Reuters - Moody's Investors Service cut its rating on Japan's government debt by one notch to Aa3 on Wednesday, blaming large budget deficits and a buildup of debt since the 2009 global recession.
The ratings agency also warned that frequent changes in Japan's government have hampered its ability to tackle the problem of bulging debt as Tokyo prepares for its sixth leader in five years.
"Over the past five years, frequent changes in administrations have prevented the government from implementing long-term economic and fiscal strategies into effective and durable policies," Moody's said.
Unpopular Prime Minister Naoto Kan confirmed on Tuesday he would step down as head of the ruling party within the week.