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Japan's 9.0 earthquake, continuous aftershocks and subsequent nuclear crisis will have no immediate impact on the crippled country's credit score. According to a Bloomberg report, Standard & Poor's sees no current effect or need to adjust Japan's AA- credit rating. Likewise, Moody's Investors Service agreed that confidence in Japan's fiscal soundness has not reached a tipping point.

Are credit rating agencies repeating the same mistakes they made with the U.S. sub-prime mortgage disaster? Could this be another instance in where they've massively under-estimated or under-stated the actual risk of credit defaults by the highly leveraged Japan? Or perhaps, rating agencies are avoiding immediate downgrades in order to prevent a run on Japanese bonds, could that be it? Whatever the case, major credit ratings appear to be on track for another late arrival - this time to an Asian-styled sovereign debt crisis. 

Illustrating Japan's growing credit dislocations, around half a dozen Japanese companies now carry a higher credit rating than long-term Japanese government bonds . Put another way, there's diminishing faith in Japan's ability to finance and pay its debts. Approximately 90% of Japan's public debt is domestically owned.

Japanese stocks (NYSEArca: EWJ) fell 10.55% in trading while the Japanese Yen (NYSEArca: FXY) rose. The ProShares UltraShort MSCI Japan ETF (NYSEArca: EWV), which aims for double daily inverse performance to Japanese stocks has jumped almost 18% over the past two days. 

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