According to S&P Japan’s Chief Credit Analyst, Tan, it seems that Bank of Japan Governor Haruhiko Kuroda has successfully passed his first test.
Tan stated that S&P does not anticipate a quick change in Japan’s credit rating.
Previously, S&P had noted that any policy shifts by the Bank of Japan could be a critical factor in determining Japan’s creditworthiness.
Tan suggested that, at present, the Bank of Japan may be able to take steps towards monetary normalization without causing the kind of prolonged market disruption that could harm Japan’s rating.
He remarked: “As long as this process doesn’t create too much trouble in financial markets and the economy, I think the impact on the ratings won‘t be significant. We shouldn’t expect changes in ratings in the next one to two years.”
Tan concluded: “In summary, if they do something ‘shocking’ to the markets, it’s negative for credit. But if the markets accept it and things remain stable, then it doesn’t impact the ratings.”
