Japan’s sovereign debt rating has been downgraded by one notch to A1 by Moody’s.

The investors service cites rising uncertainty over the country’s ability to hit its debt-reduction goal.

The announcement briefly sent the yen to a seven-year low against the dollar and pushed 10-year Japanese government bond futures down by 10 ticks.

It comes less than weeks before Japan’s Prime Minister Shinzo Abe seeks re-election at a snap poll where his stimulus policies and a decision to delay a second sales tax hike will be among the key campaign issues.