The decision of Fitch to lower the rating of Japan is a move in the right way, but just us usual - a deeply late decision and not a complete one. With its over than 230% of GDP debt and constant government deficit Japan is far away even from the new A rating. It is still a good investment rating that is not a reliable evaluation for Japan. Calculated with my formula the credit rating of Japan is BB - that is a speculative grade. This is much more closer to the true reality.
With Dobri's formula evaluation (BB) Japan is below countries like China (BBB) and Russia (AA). It is in one group with France and United Kingdom that are at the same BB level.
With the evaluation of old and politically influenced credit rating agencies (like Fitch) Japan is better that Russia and China. And this looks ridiculous as Japan has much worse debt and deficit than these countries that are with symbolic debt and deficit (if it generally exists).
Issuing such types of obviously fake ratings is the main reason of ruining the confidence in credit rating agencies that leads to a constant drop in their business.

Dobri
May 22nd 2012