Fitch Flags Risks to Euroclear Over EU Plans for Russian Assets
Economy
Fitch has placed Euroclear on Rating Watch Negative, citing increased risks linked to the European Union’s plans to use frozen Russian central bank assets to support Ukraine.
The rating agency kept Euroclear Holding and Euroclear Bank at AA, but warned that the EU initiative raises legal and liquidity risks for the Belgian-based financial services group.
According to Fitch, insufficient legal safeguards could expose Euroclear to maturity mismatches if payment obligations arise, as well as to potential large-scale litigation. While the likelihood of such scenarios remains low, the risks have increased.
In its base case, Fitch expects the European Commission to provide comprehensive legal and liquidity protections. Under this scenario, Euroclear’s credit rating would likely remain at the AA level.
According to Fitch, insufficient legal safeguards could expose Euroclear to maturity mismatches if payment obligations arise, as well as to potential large-scale litigation. While the likelihood of such scenarios remains low, the risks have increased.
In its base case, Fitch expects the European Commission to provide comprehensive legal and liquidity protections. Under this scenario, Euroclear’s credit rating would likely remain at the AA level.
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