Moody's: Japan's wider CDS not a 'turning point'

TOKYO, Nov 16 (Reuters) - Moody’s Investors Service does not think a recent widening in Japan’s sovereign credit default swap spread signals a “turning point” in the finance ability of Japanese government bonds, a Moody’s official said on Monday.

Thomas Byrne, senior vice president for the rating agency, said at a forum that signals the CDS market sends out do not always reflect the credit fundamentals of an issuer.

In May, Moody’s downgraded Japan’s foreign currency rating to Aa2 from AAA, but raised the domestic debt rating to Aa2 from Aa3. The outlook in both cases was stable. (Reporting by Masayuki Kitano)