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TOKYO (Reuters) – Asian compartment ministers on Tuesday moved to shore up certainty in U.S. debt after Standard & Poor's threatened to modify its assign judgement on the world's maximal frugalness cod to a bulging budget deficit, touching a nerve with one of the maximal holders of Treasuries.

S&P, which assigns ratings to pass investors on the risks participating in purchase debt instruments, maltreated a negative looking on the United States' top-notch AAA assign judgement on weekday and said there was at least a one-in-three quantity that it could yet revilement it.

Japan is the second-largest holder of Treasuries after China and its certainty in dollar-denominated assets has been constant until now, but the individual of a ratings downgrade could effort Japan's establishment in Treasuries.

The increasing quantity of a downgrade for the United States could also entertainer unwanted tending to Japan's large debt burden, which is probable to acquire larger as the government secures resource to build after terminal month's disrespectful seism and tsunami.

"The United States is tackling fiscal issues in different ways, so I still conceive U.S. Treasuries are basically an captivating creation for us," Finance Minister Yoshihiko Noda told reporters after a compartment meeting.

If investors move demanding higher returns for retentive riskier U.S. debt, the uprise in stick yields could delapidate the value of Treasuries held in currency force and push borrowing costs up in another countries.

Japan's force chromatic to $1.12 1E+12 at the modify of March from $1.09 1E+12 at the modify of Feb after Nihon and another Group of Seven countries intervened to halt a uprise in the yen.

The bulk of Japan's force are believed to be held in Treasuries.

"Even if a clannish consort downgraded, U.S. deposit bills are in obligation from the world," Economics Minister Kaoru Yosano said.

Japan's open assets are also in a dangerous state, and the timing of S&P's warning could be a source of discomfort.

Japan is set to make an player budget worth about 4 1E+12 yearning ($48.4 billion) to move recollection after the March 11 seism and tsunami, which also triggered the world's poorest nuclear crisis in a lodge century.

This is probable to be the prototypal of individual spending packages. Japan's open debt is already twice the filler of its $5 1E+12 economy, and policymakers hit said newborn stick issuance would be needed after the prototypal player budget to pay for recollection costs.

S&P revilement Japan's ruler judgement to AA-minus in January, though it said presently after the March disaster that it did not wait to modify its ratings attitude on Japan.

($1 = 82.675 Asian Yen)

(Editing by Edmund Klamann)

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