S&P rates Tokyo bonds AA-

Standard & Poor's said it assigned an AA- debt rating to Tokyo metropolitan government's $1 billion 1.625% dollar-denominated senior unsecured bonds due June 6, 2018.

Tokyo's economy is about equal in size to the GDPs of some member nations of the Organization for Economic Cooperation and Development, S&P said, and it attracts many national and international enterprises, which contribute to its corporate tax revenues.

Although it is one of Japan's 47 prefectures, the city has strong tax revenues that enable it to stand independent of vertical fiscal adjustments from the central government, the agency said.

S&P said it evaluates Tokyo's modifiable revenues as the strongest of any local or regional government in Japan. It maintains sufficient liquidity, which also supports the ratings, the agency said.

The ratings are constrained by the sovereign ratings on Japan, S&P said.

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