Jan. 26 (Bloomberg) -- Japan’s sovereign credit rating outlook was lowered by Standard and Poor’s because of diminishing “flexibility” to cope with a swelling debt load and concern about the lack of a plan to rein in budget deficits.

Policies set out by Prime Minister Yukio Hatoyama’s government “point to a slower pace of fiscal consolidation than we had previously expected,” S&P said in a statement today. Japan’s rating could be cut if the government fails to come up with measures to spur growth and economic growth remains limited, the firm said.

Source: Business Week Link Below