...SINGAPORE (S&P Global Ratings) June 1, 2016--S&P Global Ratings today said its sovereign credit ratings on Japan (A+/Stable/A-1) are unaffected by the government's postponement of the second installment of its planned sales tax hike. Prime Minister Shinzo Abe today announced that the increase to 10% from 8%, initially scheduled for April 2017, will be delayed to October 2019. We do not expect Japan's near-term fiscal performance to weaken materially as a result of this move. Even if the tax increase were to go ahead in April 2017, the negative impact on consumer demand would be likely to result in a modest pickup in tax collections in the first year or so. We also do not view a lesser commitment to fiscal consolidation in this announcement. Mr. Abe continues to seek an increase in the sales tax rate, albeit at a later date. Moreover, there are clear risks to Japan's economic prospects if the tax hike is implemented in early 2017. The Japanese economy faces a challenging external environment...
