S&P is affirming its credit ratings on Japan, citing the sovereign's strong external position and a recovered financial system. The rating agency affirmed the long- and short-term credit ratings at AA- and A-1+, respectively. The outlook on the long-term ratings remained 'negative.' S&P rating on Japan balances the extremely strong external position, prosperous and diversified economy, and its recovered financial system with a very weak fiscal position, aging demographics, and persistent deflation.