Independent Sovereign Rating: Further Reforms are Needed to Secure Japan's Credit Rating

Independent Sovereign Rating: Further Reforms are Needed to Secure Japan's Credit Rating PR Newswire BERLIN, WASHINGTON D.C., GÜTERSLOH, Germany, November 20, 2012 BERLIN, WASHINGTON D.C., GÜTERSLOH, Germany, November 20, 2012 /PRNewswire/ -- Bertelsmann Foundation presents new rating model with international examples - Japan burdened by high debt and demographic change Japan continues to enjoy a high credit rating in international sovereign ratings. However, in order to retain this reputation, the country requires a range of social and economic reforms. This is the conclusion of the feasibility study of the first independent and non-profit-oriented sovereign rating system, which was compiled by the Bertelsmann Foundation, a renowned German think tank, and which has very recently been presented in Berlin. As well as the traditional macroeconomic indicators, this sovereign rating system included additional outlook indicators in the analysis, in collaboration with international rating specialists. These include countries' crisis management capabilities, investments and the development of future resources or the implementation of necessary structural reforms. To illustrate how this International Non-Profit Credit Rating Agency (INCRA) works, the credit rating of five selected countries was calculated for the new study using the new set of indicators. The new ranking method gives Japan a credit rating of 6.0 (on a scale of 0 to 10).