Strong revenue growth over the past three years has improved Japan's fiscal position faster than we had expected and will continue to slow debt accumulation, in our view. However, we believe the fiscal deficit could widen over the next two years due to higher spending on investments and economic support measures, particularly if growth weakens more than anticipated. We affirmed our 'A+' long-term and 'A-1' short-term foreign currency and local currency sovereign credit ratings on Japan. The stable outlook on the long-term ratings reflects our view that nominal GDP and revenue growth will remain resilient despite rising risks from geopolitical developments. On March 30, 2026, S&P Global Ratings affirmed its 'A+' long-term and 'A-1' short-term unsolicited sovereign credit ratings on
