Fitch warns on future resolution regimes, Ireland not ‘a precedent’
Future bank resolution regimes may be much better for taxpayers than creditors, rating agency Fitch said in a report published on Tuesday, suggesting that the recent favourable outcome for senior creditors in Irish banks is unlikely to set a precedent for the treatment of senior debt.
With the implicit support being taken away, debt ratings would come under downward pressure. Fitch noted, however, that improving fundamentals and an improved micro and macro prudential regulatory framework may mitigate the downward trend.
It is not the first time that a rating agency has warned market participants
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