Fitch warns ‘queue-jumpers’

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Companies could face multiple downgrades if they exploit loopholes in bond documentation to secure funding from banks, says a Fitch Ratings report.

Last month, the rating agency warned that certain clauses in documentation in corporate bonds may result in ineffective protection for bondholders, and that if companies exploited these loopholes, ratings would be lower than otherwise justified by business or financial profiles.

In its report, entitled Jumping the Queue, Fitch identifies examples

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