Tokyo Metropolitan Government

Japan will maintain a very predictable and well-balanced institutional framework. TMG maintains a strong revenue base as the economic center of Japan. TMG's strong record of revenue and expenditure management demonstrates its fiscal discipline. Ratings on the sovereign constrain those on Japan's local and regional governments. TMG's revenue from corporate-related tax will decline significantly and expenditure will expand because of the outbreak of COVID-19. TMG's reserves will cushion deterioration of its budgetary balances. We expect solid economic fundamentals to moderately improve TMG's debt-related ratios from fiscal 2022. TMG continues to have exceptional liquidity despite having partly drawn down its reserves. The stable outlook on Tokyo Metropolitan Government (TMG) reflects that on our long-term sovereign credit rating on Japan (unsolicited rating

...Credit context and assumptions Base-case expectations + Japan will maintain a very predictable and well-balanced institutional framework. + TMG maintains a strong revenue base as the economic center of Japan. + TMG's strong record of revenue and expenditure management demonstrates its fiscal discipline. + Ratings on the sovereign constrain those on Japan's local and regional governments. + TMG's revenue from corporate-related tax will decline significantly and expenditure will expand because of the outbreak of COVID-19. + TMG's reserves will cushion deterioration of its budgetary balances. + We expect solid economic fundamentals to moderately improve TMG's debt-related ratios from fiscal 2022. + TMG continues to have exceptional liquidity despite having partly drawn down its reserves....

Full Report