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To: Mohan Marette who wrote (53390)7/23/1998 11:15:00 AM
From: Lee  Read Replies (1) | Respond to of 176387
 
Hi Mohan,..***Off Topic***

Re: Japan's sovereign credit rating

Another one of your tough questions. Moody's threatened this back in April of this year and I believe S&P did it already in Dec. because of the failures or near failures of Yamaichi or Nomura?(sp) But even though Japan is not a debtor nation, the downgrade still affects all businesses and bonds. It will just be more expensive to borrow capital, (I know the banks aren't lending much anyway now) and make the debt that the Bridge Bank is supposed to consolidate bigger.

I wish I could answer in more detail or with better analysis but I just don't know all the ramifications. Maybe I'll go back to Ga State and take ECON.<VBG> (Engineering Econ seems to be lacking lately)<LOL>

I don't know about investment 'fleeing' Japan, only that it will command a higher premium. Given that Japan has embarked on government spending programs to try to stimulate the economy, maybe it will cause them to re-think their foreign treasury holdings.??

biz.yahoo.com
Moody's moves closer to downgrading Japan rating

Regards,

Lee