Rating agency Fitch maintained Anglo Irish Bank on rating watch negative, saying it continues to believe that Irish authorities are “likely to avoid a default or coercive burden-sharing” for the lender’s senior unsecured, unguaranteed creditors.

A potential restructuring of the Government’s promissory notes to Anglo “would have significant implications for Anglo’s financial position”, Fitch said, as the notes were “by far the largest asset on its balance sheet”.

Minister for Finance Michael Noonan has indicated that the Government will not impose losses on Anglo Irish Bank’s senior unsecured, unguaranteed bondholders.