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Kerry has been one of the few willing to argue the good things about Dodd. Like you, I think this looks bad - and he was already in trouble.
I don't think Kerry missed the negatives Dodd has. His comments always dealt with real positive things that Dodd had accomplished. I suspect it is personal as well. Along time ago, someone posted a real nice article here that spoke of how the Kerry's had dinners with the Daschle's and had a dinner around the time of the inauguration with the Kennedys and the Dodds. The fact that Dodd was with him then when within one month he went from the man that every phony Democrat played up to - to being treated badly by many might have been part of it. In addition, Kerry is a very loyal person - and previously nothing was proven.
I would assume that if Dodd is proven to have violated ethics, Kerry will have a tough time doing it, but he likely will say it was wrong.
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