Standard & Poor’s (S&P) has downgraded its ratings on 10 Japanese insurers, including some foreign subsidiaries.

It reflects the agency’s move to cut Japan’s sovereign debt rating by one notch to A+ from AA- amid growth concerns in Asia’s second-biggest economy.

“The ratings on the insurers are constrained by the sovereign ratings because… their business franchises and assets are highly concentrated in Japan, in our view,” S&P says.

The agency has cut financial strength and long-term counterparty credit ratings by one level to A+ for eight insurers: Tokio Marine & Nichido Fire Insurance, Tokio Marine & Nichido Life Insurance, Ace Insurance, Sony Life Insurance, The Gibraltar Life Insurance Company, Prudential Life Insurance, The Prudential Gibraltar Financial Life Insurance Company and MassMutual Life Insurance.

The short-term counterparty credit ratings on Mitsui Sumitomo Insurance and Aioi

Nissay Dowa Insurance have been reduced by one notch to A-1.

“Even if they were to enhance their financial profiles, we are unlikely to raise the ratings on these insurers as long as the sovereign rating on Japan remains at the current level,” S&P says. “We may lower the ratings on the insurers if the sovereign rating on Japan is lowered.”

There are growing doubts that Prime Minister Shinzo Abe’s economic strategy – dubbed “Abenomics” – can reverse the country’s fortunes.