Japan is a safer investment than France even after Standard & Poor's cut the Asian nation's credit rating to three steps lower than its top-ranked European counterpart, credit-default swap prices show.
Contracts that protect investors against a default on Japan's government debt cost 75.78 basis points, or $75,780 annually to protect $10 million in bonds, compared with 86.81 for France.
S&P lowered Japan one step to AA- on Jan. 27, two weeks after economy minister Kaoru Yosano said the nation's fiscal situation is "unhealthy." The company rates France AAA.