Moody’s: Tokyo can pay its way

THE Japanese government has the fiscal and credit means to deal with a disaster which could cost twice as much as the 1995 Kobe earthquake, ratings agency Moody’s has affirmed.

Japan, which has public debt twice the size of its $5 trillion (£3.08 trillion) economy, is rated Aa2 by Moody’s, which said its base-case assumptions remain broadly unchanged from a week ago

It expects Japan’s economy to start growing again in the second-half of 2012, thanks in part to reconstruction efforts. It added that investors would stay confident in Japanese bonds.