Moody's downgrades Japan over debt concerns

Japan’s sovereign debt rating has been downgraded by one notch to A1 by Moody’s.

The investors service cites rising uncertainty over the country’s ability to hit its debt-reduction goal.

The announcement briefly sent the yen to a seven-year low against the dollar and pushed 10-year Japanese government bond futures down by 10 ticks.

It comes less than weeks before Japan’s Prime Minister Shinzo Abe seeks re-election at a snap poll where his stimulus policies and a decision to delay a second sales tax hike will be among the key campaign issues.