Japan defiant over credit downgrade

The Japanese government has responded angrily to the downgrading of its credit worthiness by the American ratings agency Standard and Poor's.

The move apparently reflects international concern at Japan's debt burden and growing political problems.

But the finance minister, Kiichi Miyazawa, said he thought the downgrade from the top grade triple-A to double-A-plus was a mistake, and insisted it would not change the country's fiscal policy.

However, a BBC correspondent in Tokyo said the move could put more pressure on Japan to restructure its economy and tackle its soaring government debt.

Our correspondent says that with the prime minister, Yoshiro Mori, barely clinging to power, Japan could be entering a period of political confusion.

From the newsroom of the BBC World Service