Moody's says Japan credit rating remains stable despite facing spending risks.

The prospect of trillions of dollars in government spending has already impacted the Japanese bond and currency markets, but at least for now it has not changed Moody's outlook. The deputy head of the sovereign risk division at the credit rating agency, Martin Petch, has not sounded the alarm on Japan's fiscal direction, but he believes that further clarification is needed on Prime Minister Naoto Kan's plan to invest over 370 trillion yen in the economy over 14 years. "At present, we believe that its rating is quite stable," Petch said in an interview. Moody's has given Japan an A1 rating, the fifth highest investment grade, with a stable outlook. "The risks are very well balanced."