Moody’s Opens Pandora’s Box on AAA Debt Ratings: William Pesek

More downgrades on government debts. This time it is Japan. UK has been put on the watch list and there are loud warning about US debt levels.

So where do you invest your money?

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May 26 (Bloomberg) -- The shot Standard & Poor’s put across Britain’s bow last week made headlines. An earlier one by Moody’s Investors Service deserves more attention.

The Moody’s action didn’t involve the U.K., but Japan. On May 18, it stripped Asia’s biggest economy of its last AAA rating. Moody’s cut Japan’s foreign-currency debt grade from Aaa to Aa2. While Japan is a negligible overseas borrower, the symbolism extends to a much bigger point.