Moody's Investors Service has lowered the credit rating of 12 Japanese prefectures in the wake of Japan’s sovereign debt rating being dropped to “Aa3” from "Aa2."

Moody's, one of the top global credit rating agencies, lowered the rating of each of the prefectures to Aa3 from Aa2.

Moreover, Bloomberg reported that the credit agency lowered by an average of one level the credit ratings of banks under Mitsubishi UFJ Financial Group, Sumimoto Mitsui Banking Corporation, and Mizuho Financial Group.