Japan's already less-than-sterling credit rating took another hit from Fitch's downgrade Monday, but the country's bonds and currency are likely to remain impervious to the blow.
"The Bank of Japan has a very aggressive bond buying program which can offset a lot of other things," said Marcel Thieliant, a Japan economist at Capital Economics. "For the foreseeable future, I don't think it has any practical consequences."
In April of 2013, the Bank of Japan launched a massive quantitative easing program, which was later expanded to purchase 80 trillion yen worth of assets a year, as a part of Abenomics – a series of policy measures unveiled under Prime Minister Shinzo Abe to jump start the economy.
The yen weakened after Fitch announced it downgraded Japan's credit rating to A from A+, with the U.S. dollar fetching 119.42 yen after the news from around 118.88 yen before. But the Japanese currency quickly recovered, with the greenback fetching around 119.11 yen in Asian trade Tuesday.
The yield on the 10-year Japanese government bond (JGB) moved slightly higher to around 0.311 percent from 0.307 percent before the announcement, although that's not out of line with recent daily moves. Bond yields move inversely to prices.
Fitch's downgrade is only the most recent rating action that the markets have shrugged off; in December, Moody's Investors Service cut Japan's rating to A1, equivalent to one level above Fitch's rating, citing similar reasons.