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Euroclear put on notice about possible rating downgrade

Fitch highlights liquidity risks for central securities depository if EU plan for a loan to Ukraine goes ahead

Fitch has put Euroclear, the Brussels-based central securities depository, on notice of a possible downgrade to its credit rating over potential liquidity issues linked to EU plans for a loan to Ukraine.

Fitch said on Tuesday it was placing Euroclear Bank on “rating watch negative”, which could lead to a downgrade of its AA rating.

The move comes as European leaders prepare to meet on Thursday to decide whether to authorise a so-called reparations loan to Ukraine, which would be backed by up to €210bn in Russian central bank assets that have been frozen by