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Moodys: Japan SME CDO ratings to show stable to positive trends

Collateralised debt obligations based on the debt of Japanese small and medium-sized enterprises (SME) are expected to be stable in the near term, Moody's Investors Service says

A large increase in SME defaults is unlikely as the economy continues to recover, according to a recent report, Japan SME CDO rating monitoring: June 2010 update, by Moody's Tokyo-based analysts Shinji Yoshizawa and Shinichi Takeda.

The Japanese economy has been in recovery since the spring of 2009, due mainly to improvements in production and a rise in exports. Corporate bankruptcies have

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