Asian credit still sound amidst shadows of European debt

But Japan is an exception, as debt problems intensified in the recent months, according to Standard & Poor’s.

In a Reuters report, Takahira Ogawa, Standard & Poor's director of Asian sovereign ratings, said Asian economic credit story is positive and that there is still a potential for growth in the region.

According to the report, Mr. Ogawa said that substantial holdings of Asian nations of U.S. Treasury notes and bonds may be affected by a possible U.S. downgrade, but it would not affect their credit standing.

However, he pointed out that Japan’s situation is probably getting worse as there is no progress in structural reform and fiscal consideration.

View the full report here.