S&P Cuts Japan's Debt Rating

Credit rating company Standard & Poor's lowered its debt rating on Japan to "AA-" from "AA" this morning, citing the country's high debt load.

S&P said that it expects Japan's fiscal deficits to remain high for the next few years and that the country's government lacks a “coherent strategy” to address its growing debt. S&P said that Japan is still dealing with  "persistent deflation" and a "fast-aging population."

S&P said its outlook on the country is stable.

It was the first downgrade of Japanese government debt since 2002.

Other countries have also faced downgrades over the past year, including Greece, Spain and Portugal, and S&P and Moody's, another credit rating company, have cautioned that the United States could lose its "AAA" rating because if its increasing deficit.