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

Moody's report says large increase in Japan SME defaults unlikely as economy recovers

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 declined since the second quarter 2009 as business and financing environment for Japan's SMEs improved on