Corporate Japan's Debt Climbs 4.6% to ¥678 Trillion as Deals and Payout Pressure Threaten Ratings
Updated
Updated · Bloomberg · Jun 7
Corporate Japan's Debt Climbs 4.6% to ¥678 Trillion as Deals and Payout Pressure Threaten Ratings
2 articles · Updated · Bloomberg · Jun 7
Summary
¥678 trillion in debt was held by Nikkei 225 companies reporting for the fiscal year through March, a 4.6% increase from a year earlier, as Japanese businesses borrowed more to plug cash shortfalls.
Record M&A, heavy capital spending and rising investor demands for shareholder returns drove the borrowing, stretching balance sheets even as companies pursued growth and payouts.
All three major rating agencies increased downgrades in 2025, linking the debt buildup to mounting pressure on corporate credit quality.
The trend shows how Japan Inc.'s push for acquisitions, investment and shareholder-friendly policies is increasingly being financed with leverage rather than internal cash.