Global credit rating agency Fitch Ratings has downgraded Japan’s credit rating by two notches to “A plus” with a “negative outlook.”

Fitch also maintained a negative outlook for the country's sovereign credit status, leaving open the possibility of a further downgrade.

In a statement Tuesday, the agency said its decision reflected growing risks for Japan's sovereign credit profile as a result of high and rising public debt ratios.

The agency added that Japan’s fiscal consolidation plan looks "leisurely" even when compared to other fiscally challenged high-income countries, noting the plan's implementation is subject to political risk.

With the downgrade, Japan now has the same credit rating as South Korea.