Fitch vexed about UK liquidity shortfall risk

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Fitch vexed about UK liquidity shortfall risk

Fitch has explained how its new covered bonds counterparty criteria, published in March, might affect covered bond ratings of UK banks. The agency sees temporary liquidity shortfalls as the highest risk to covered bond programmes, so UK banks will have to show a commitment to improve their liquidity reserves, or risk a ratings downgrade.

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