Moody's: The results of Japan's July 20 election may affect fiscal health and ratings.

[Moody's: The results of Japan's July 20 election may affect fiscal health and ratings] Moody's stated that the upcoming House of Councillors election in Japan could have a significant impact on fiscal health and credit ratings if it leads to large-scale tax cuts. The election on July 20 is crucial for Prime Minister Shigeru Ishiba's government's continuation in power, especially after his ruling party, the Liberal Democratic Party, and its coalition partner, Komeito, lost their majority in the House of Representatives in the temporary elections in October. The LDP and Komeito coalition plans to include cash distribution measures in their campaign promises to help families cope with inflation, but they are resistant to the opposition's demands for tax cuts. Christian de Guzman, manager of Moody's Sovereign and Sub-Sovereign Risk Group, stated that if pressure for tax cuts increases due to the election, it could negatively impact the country's rating, depending on the magnitude and duration of the tax cuts.