Japan has launched a $100 billion plan to assist companies in fighting with a surging yen after Moody’s cut rating, Economic Times reported.

The government will release foreign exchange reserves to the state-run Japan Bank for International Cooperation for funding to aid exporters and spur purchase overseas, said Finance Minister Yoshihiko Noda.

This announcement came post Moody’s Investors Service downgraded the nation’s debt rating one step to Aa3, with a stable outlook.

The yen was trading on Wednesday at a level stronger than before officials last interfered to weaken the currency on August 4.

"The government's message may be that businesses need to come up with their own ways to deal with the strengthening currency, that they should not hold their breath for intervention," said Toshiya Yamauchi, a senior currency analyst in Tokyo at Ueda Harlow.

"But the reality is that the demerits of a strong yen far outweigh the merits.," he added. The ministry will bolster monitoring of the currency market, requiring major financial institutions to disclose trading positions through September 30, said finance minister Noda.

The appreciation of yen is bad for the economy and may exacerbate the nation’s fiscal woes, stated Thomas Byrne, a vice president at Moody’s.  Bank of Japan praised the finance ministry’s announcement, stating that the measures will contribute to the stability of currency markets.

“The one-year funding program through Japan Bank for International Cooperationis intended to encourage "the private sector to exchange yen-denominated funds to foreign currencies by supporting exports by small and midsized companies, securing energy resources and helping Japanese companies to purchase foreign businesses," Noda said.