Fitch warns asset-backed pension schemes face downgrade

Fitch Ratings has warned that European companies face credit rating downgrades if they offer asset-backed guarantees for their defined benefit pension schemes.

In a new report on European pensions, Fitch said: "the dedication of company assets through asset-backed pension guarantees may structurally subordinate senior unsecured bondholders by restricting access to corporate assets upon insolvency".

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