Fitch Ratings downgraded Japan's credit rating by one notch after the government failed to take steps in this financial year's budget to offset a delay in a sales tax increase, the agency said on Monday.
Fitch cut its rating on Japan by one notch to A, which is five notches below the top AAA rating. The outlook is stable.
Fitch's move follows a similar downgrade by Moody's Investors Service late last year and could pressure the government to take tough measures in a fiscal discipline plan that is due sometime around June.
