Neptune's Taylor warns of downgrade after quake

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Chris Taylor, manager of the Neptune Japan Opportunities fund, has warned Japan may face downgrades to its credit rating and see its currency weaken after last week's earthquake.

Taylor, investment director and head of research at Neptune, says the disaster recovery operation will force government debt higher, prompting ratings agencies to potentially take action. He says: "This is principally a humanitarian disaster which the government will have to finance. This will add to its debt burden, further undermining the currency and making more downgrades likely." Standard & Poor's downgraded Japan's long-term credit rating from AA to AA- with a stable outlook in January, but Taylor expects further moves from ratings agencies in the wake of the natural disasters. ...

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