Moody's downgrades Japan's debt rating (ext. CNN)

Moody's has cut Japan's credit rating by one notch citing concerns about the government's ability to reduce its mountain of debt and implement long-term fiscal sustainability measures.

Moody's now holds rating for Japan at Aa3, on a par with rival agency Standard & Poor's, which rates the world's third-largest economy at AA-, the same level as China.

Later this month, Japan will face yet another change in the country's political leadership, the frequency of which Moody's cited as a key factor obstructing the implementation of necessary fiscal measures to bring down its debt.