Moody's: Japan political stalemate a concern for debt outlook

TOKYO, Oct 12 (Reuters) - The stand-off between Japan's government and opposition parties is a concern as it has stalled important legislation needed to fund government spending, rating agency Moody's Investors Service said on Friday.

Japan's politicians still have some time to bring down debt as government bond yields are likely to remain low and the current account balance is likely to remain in surplus for the time being, Moody's senior vice president and regional credit officer Tom Byrne told reporters.

Moody's rates Japan at Aa3, three notches below the top AAA rating, with outlook at stable.

(Reporting by Stanley White; Editing by John Mair)

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