While Japan's emergency economic package announced Friday is a positive step, its immediate impact on bank credit ratings will be limited, Moody's Investors Service Inc. said Monday.
"The plan fails to address the true scale of Japanese banks' problem assets and it is too soon to conclude if the schemes presented in the package will lead to the banking system's fundamental recovery," the U.S. credit rating agency said.
Japan's new economic package set a two-year deadline for major banks to dispose of bad loans along with a proposal to set up a government-backed mechanism to buy bank-held company shares.