Japan MOF Fujii: Rating move reflects solid economy

TOKYO, July 5 (Reuters) - Japan will continue to pursue fiscal reconstruction and reforms, Vice Finance Minister Hideto Fujii said on Thursday after a decision by Moody's Investors Service to review Japan's debt rating for a possible upgrade.

"We do not comment on each rating decision made by private agencies," Fujii told a news conference.

"But in general, we believe Japan's sound economic fundamentals and efforts to restore fiscal health are being recognised internationally," he said.

Moody's said on Wednesday it had placed Japan's A2 sovereign rating on review for a possible upgrade, saying Japan had reached an "inflection point" in efforts to curb its massive government debt.

An upgrade by Moody's of Japan's A2 sovereign rating for domestic-currency debt would mark a turnaround from a series of downgrades by the ratings agency, which began with a cut in Japan's top-notch Aaa rating in November 1998.

Moody's move came after ratings agency Standard & Poor's raised Japan's foreign and local currency long-term sovereign ratings to AA from AA-minus in April.