Fitch: EU Bank ST Ratings under Pressure from Bank Resolution

April 24, 2015 11:59 AM

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(The following statement was released by the rating agency) Link to Fitch Ratings' Report: EU Bank Short-Term Ratings here LONDON, April 24 (Fitch) Fitch Ratings says weakening government support will exert pressure on around 30 EU banks' Short-Term Issuer Default Ratings (IDRs) in 2Q15 despite improvements in intrinsic liquidity profiles at many banks across the sector.

However, for a small number of the currently support-driven investment grade banks, liquidity profiles may be sufficiently strong for Short-Term IDRs to be unaffected, even if Long-Term IDRs are downgraded. Short-term IDRs reflect a bank's vulnerability to default in the short-term (up to 13 months)...

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