In their affirmation of the Japanese rating, Fitch write:

• 'A' ratings balance the strengths of an advanced, wealthy economy with correspondingly robust governance standards and public institutions, against weak medium-term growth prospects and very high public debt.
• The central bank's monetary strategy and broad domestic investor base continue to support low bond yields and the government's financing capacity, despite gradual moves towards monetary policy tightening. Persistent current account surpluses, a large external asset position and the yen's reserve currency status also support the rating.
• Fitch expects the BOJ to raise the policy rate to 0.25% by end-2025, while purchasing JGBs in amounts broadly in line with maturities of its existing JGB portfolio.
• Forecasts real GDP growth to slow to 0.6% in 2024, from 1.9% in 2023.