Japanese prime minister Naoto Kan steps down

Japanese prime minister Naoto Kan has stepped down as leader of the ruling Democratic Party and said he would resign as prime minister once his party elects a new leader.

Kan's resignation comes after rating agency Moody's downgraded Japan's credit rating in the wake of the tsunami and the nuclear catastrophie that ravaged the Japanese economy. The government also came under fire for not living up to the nation's expectations.

"I propose to you that I resign as the leader of the Democratic Party of Japan today," Kan told party lawmakers. "Once a new leader is elected, I will resign promptly as prime minister and my cabinet will resign," he added.

Kan also appeared on national television to announce that he was resigning as the leader of the ruling Democratic Party.

Kan, Japan's sixth prime minister in five years, has been in office for hardly 15 months before the economy was done down by the devastation caused by the 11 March tsunami and the nuclear reactor meltdown that followed.

The Democratic Party is expected to meet on Monday to elect a new leader, who would then become prime minister. The Parliament will then ratify the election.