Global credit ratings agency, Moody's, has some words of warning for Japan. Moody's says Japan's return to recession and a bigger-than-expected slump in first-quarter economic growth are negative for its credit rating.

As we've been reporting here on Biz Asia, the triple blow of the March earthquake-related disaster has nudged Japan into recession and led to a deeper than expected 0.9 percent contraction in the January to March period.

The agency urges Prime Minister Naoto Kan to compile a second extra budget. While reconstruction and relief expenditures will eventually lead to a rebound in economic growth, the scale of loss in output and income caused by the disaster may have already retarded the country's future growth trajectory.

Moreover, Moody's is warning about the long-term implications for Japanese companies. It says they could permanently lose global market share due to extended supply chain disruptions.