Fitch downgrades three major Japanese banks

Fitch said Friday it cut the credit rating of three of Japan's biggest banks over concerns about Tokyo's ability to support the financial sector after the nation's sovereign debt rating was also cut. The global ratings agency said it lowered its rating to 'A-' from 'A' -- the seventh best score on a scale of 22 -- for Mitsubishi UFJ Financial Group (MUFG), Mizuho Financial Group (MHFG), and Sumitomo Mitsui Financial Group. In the same statement, Fitch said it also lowered its rating for Sumitomo Mitsui Trust Bank to the same level as the major banks. "The downgrade...reflects the government's weakened financial ability to support the banking system as indicated by the downgrade of (Japan's sovereign rating)," Fitch said in a statement. In May, Fitch cut Japan's credit rating, citing its "leisurely" efforts at shrinking a massive public debt, as Tokyo struggles to kick-start the world's third-largest economy. The agency downgraded Japan's long-term rating to "A+" from "AA", with a negative outlook, noting "growing risks for Japan's sovereign credit profile as a result of high and rising public debt ratios".