Moody’s downgrades France debt rating, S&P downgrades Japan

Something to keep an eye on. . . .With everything else going on in and around financial markets, sovereign debt problems have been on the back burner. Other countries likely to weigh-in similarly with repercussions sooner or later in stock and bond markets.  Asian markets down again  overnight – Nikkei down 362 (-1.96%); Shanghai down 69 (-2.16%); Hong Kong down 494 (-2.26%). Note gloomy mood among rating agencies.

FRANCE
Investopedia/Shiv Mehta/9-21-2015

Moody’s says persistent slow growth to continue for the next five years posing a significant threat to the government’s ability to reduce its debts.

JAPAN
Investopedia/Shiv Mehta/9-17-2015

S&P says Japan will find it difficult to improve financial health, fiscal stimulus has failed to produce results. Future debt rating downgrades possible if government debt burden rises significantly more than projected.

Note: Earlier in September, S&P cut Brazil’s rating to junk.