Moody's downgrades Japan's TEPCO

Ratings agency Moody's on Monday again downgraded TEPCO, the operator of Japan's stricken Fukushima nuclear plant, and warned the rating would remain on review for further possible action. The agency said it downgraded Tokyo Electric Power's senior secured debt by one notch to Baa2. It also downgraded TEPCO's long-term issuer rating two notches to Baa3 from Baa1. It was its third downgrade of Asia's biggest utility since the March 11 earthquake. Moody's said the downgrade came amid "increased clarity that the Japanese government intends to hold TEPCO responsible for compensating various parties harmed by the accident" at the plant. It also cited "continuing uncertainty as to how TEPCO will be actually supported by the government to meet its compensation and other expenses following the March 11 earthquake".