Japan became the latest country hit by the current round of sovereign-debt downgrades, with the government's credit rating lowered Wednesday by Moody's Investors Service.

The move puts fresh pressure on the country's political leaders to repair its finances, the worst in the industrialised world. Moody's said on Wednesday morning it was cutting Japan's government bond rating to Aa3 from Aa2, citing "large budget deficits and the build-up in Japanese government debt since the 2009 global recession."