NEW YORK (CNNMoney) -- Standard & Poor's has revised Japan's credit rating outlook to "negative," blaming the crisis triggered by last month's earthquake.
S&P said late Tuesday that its revision to the nation's outlook, to "negative" from "stable," reflects the possibility of a downgrade, as Japan grapples with the specter of increased deficits in the wake of a deadly earthquake, tsunami and nuclear power plant disaster.
"Standard & Poor's expects costs related to the March 11, 2011, earthquake, tsunami, and nuclear power plant disaster will increase Japan's fiscal deficits above prior estimates by a cumulative 3.7% of GDP through 2013," said the rating agency.
The rating agency also said its revision to the outlook was "to reflect the potential for a downgrade if fiscal deterioration materially exceeds these estimates in the absence of greater fiscal consolidation."
S&P affirmed its long-term sovereign credit ratings for the country at AA- and short-term ratings at A-1+.
"Much will depend on Japan's political leadership and its ability to forge a political consensus on how to offset fiscal measures in the future," said S&P. "The extent of environmental contamination in northeastern Japan remains unknown."
S&P estimated that Japan's reconstruction could cost the country ¥30 trillion, which is equal to about $364 billion.
Japan isn't alone. On April 18, S&P lowered the outlook for the United States
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.53%||3.69%|
|15 yr fixed||2.74%||2.85%|
|30 yr refi||3.58%||3.72%|
|15 yr refi||2.73%||2.84%|
Today's featured rates:
Investors need someone they can bring home to mother instead of bad boys (or girls) that may make their heart beat faster. Boring beats bold in this market. Here are 10 dependable stocks we love. Southwest (ticker symbol: LUV) is one. More
Cheap oil and slow global growth may not be the only culprits of the global market turmoil. There's growing concern that central banks are spooking the markets too. More
Intel's freeD and Curie technology is changing how we watch sports. More
Why is Donald Trump missing from Bleacher Creatures' new line of presidential candidates plush dolls? More