The agency has flagged risks linked to the EU plot to use the frozen funds for a “reparations loan” to Ukraine
Fitch Ratings has placed Euroclear Bank, the Belgium-based depository holding frozen Russian assets, on notice for a possible downgrade, citing legal and liquidity risks linked to the EU’s attempt to use the funds to finance a “reparations loan” to Ukraine.
The move on Tuesday to place Euroclear on “Rating Watch Negative” means there is a higher chance its AA credit rating could be cut soon. Fitch said it may downgrade the bank if the European Commission’s plan goes ahead without strong legal and liquidity safeguards.
Euroclear was…
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