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Anglo demoted in credit rating

Global ratings agency Fitch has downgraded Anglo Irish Bank to its BBB+ from A- and revised its outlook to Rating Watch Negative.

Fitch said the rating actions follow the announcement by Finance Minister Brian Lenihan, right, last week on the new restructuring proposal for Anglo, whereby the bank will be split into two separate legal entities: the Asset Recovery Bank (ARB) and the Funding Bank.

It said that it understands that the ARB will be based on current Anglo's non-NAMA assets and believes that it will be managed as a winddown vehicle. The Funding Bank will have Anglo's customer deposits.