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Moody's Japan K.K. said on Wednesday that weak domestic and global GDP growth will support stable earnings for non-financial corporates in Japan in 2016.
"Japan's corporates remain cautious under subdued domestic and global conditions, and will broadly focus on cutting costs, reducing leverage and maintaining credit quality and ratings," a Moody's Vice President and Senior Analyst, Masako Kuwahara, said.
The agency expects the Japanese economy to expand 0.5%-1.5% in 2016.
Moody's noted that it expects limited direct impact on Japanese corporates from the slowdown in the Chinese economy.
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