Moodys Cuts Japans Credit Rating in Blow to Abenomics

The video discusses Moody's decision to downgrade Japan's credit rating due to concerns over the country's fiscal goals and high debt-to-GDP ratio. The downgrade coincides with an election campaign, raising questions about its timing. The delay in a sales tax increase by Mr. Abbay is highlighted as a trigger for the downgrade, affecting Japan's commitment to fiscal targets.

How do rating agencies typically respond to their timing in relation to economic events?

What is the significance of the timing of the downgrade in relation to the election campaign?