International rating agency Moody's has recently downgraded Japan government bond, from Aa3 to Aa2. The new rating is three notches below Moody's top Aaa rating. It said the outlook for the rating is stable. The downgrade came as a result of Japan's large budget deficits and growing government debt.

The move has been excepted ever since May, when Moody's wanred it could downgrade japan after its economy went back into recession in the first quarter, following the earthquake and tsunami on March 11.

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(photo source: Photoxpress.com)