Fitch, the third-largest rating agency, placed Belgium, Cyprus, Ireland, Italy, Slovenia and Spain on credit watch “negative” in mid-December, signalling the possibility of a downgrade within three months. At that time, Fitch said that the absence of a “comprehensive solution” to the region’s debt crisis was the reason for placing the six countries’ ratings on credit watch negative.
Cyprus has a BBB rating from Fitch.
Last week Cyprus was downgraded by ratings agency Standard & Poor’s along with eight other European countries. As a result, France and Austria lost their coveted AAA rating, while Cyprus was downgraded to junk status.
In response to that downgrade, Finance Minister Kikis Kazamias said that Standard & Poor’s decision on Cyprus was arbitrary and unsubstantiated and that the ratings agency had acted in a high-handed manner.
On Thursday Fitch’s Mr Parker, who was speaking at a conference in Madrid, said that the review would be concluded by the end of January.