Fitch Ratings has upgraded Cyprus by one notch from ‘B+’ to ‘BB-’ with a positive outlook on continuing strong progress in its adjustment following the 2013 banking crisis but warns that banks remain weak due to the high level of NPLs.
Fitch Ratings has affirmed the long-term credit rating of Cyprus B+, with a positive outlook, but warned that "banks remain fundamentally weak and pose an ongoing risk to the economy and public finances."
Ratings agency Fitch has upgraded the Bank of Cyprus and the Hellenic Bank but warned that the island's biggest lender still faces a high risk of capital erosion because of weakening asset quality and profitability.
Standard & Poors lifted its rating on Cyprus to B, while Fitch revised its outlook on the country to 'stable' saying that the economy "has proved more resilient than previously expected".
Following yesterday's storming of the Bank of Cyprus by angry investors who claim they were mis-sold high-yield bonds, Fitch Ratings has downgraded the covered bonds of the Bank of Cyprus and the Cyprus Popular Bank.
Ratings agency Fitch has downgraded the Republic of Cyprus' sovereign credit rating two notches on its belief that it may cost the government more to bailout the island's banking sector than previously anticipated.
Following its downgrade of three of the island's banks last Friday, ratings agency Fitch has today downgraded the Bank of Cyprus and the Cyprus Popular Bank's covered bond ratings.
Following Fitch Ratings downgrade of Cyprus sovereign credit rating on Wednesday, it has pushed the islands top three banks further into junk territory and believes that the failure of the Bank of Cyprus and the Cyprus Popular Bank "is imminent".
Credit ratings agency Fitch has cut the island's credit rating by two notches with the possibility of a further downgrade citing a fiscal budget that has significantly underperformed expectations.
Following Fitch Rating's downgrading of the Island's credit rating to junk on Monday, Fitch downgraded the Island's top three banks - the Bank of Cyprus, the Cyprus Popular Bank and the Hellenic Bank earlier today.
Credit ratings agency Fitch downgraded the Island's credit rating to "junk" status earlier today due to the amount of rescue money needed to bail out its banks, which are heavily exposed to the Greek economy.
International ratings agency Fitch has placed the Island's top three commercial banks on rating watch negative meaning that they could be downgraded in the near future as they remain highly sensitive to events in Greece.
The covered bonds of the Bank of Cyprus and the Marfin Popular Bank have been downgraded by Fitch Ratings following the downgrade of Cyprus' sovereign rating and the subsequent downgrades of Marfin and BoC's' Long-Term Issuer Default Ratings.
Fitch Ratings has downgraded three Cypriot banks by one notch saying that finding private capital to cover their capital needs until June will be "difficult". Fitch downgraded the three banks to BB+ from BBB- with negative outlook.
Following its warning a week ago, Fitch cut the sovereign credit ratings of Cyprus and five other Eurozone nations yesterday, indicating there was 50 percent chance of further cuts in the next two years.
Cyprus faces the prospect of a further ratings downgrade by the end of the month after credit ratings agency Fitch repeated its intention to downgrade the Island and five other eurozone countries.
Credit ratings agency Fitch has placed Belgium, Spain, Slovenia, Italy, Ireland and Cyprus on rating watch negative as it believes that a 'comprehensive solution' to the Eurozone crisis is technically and politically beyond reach.
Fitch Ratings agency has cut Cyprus' long-term local and foreign currency ratings by two notches to within two steps of junk territory, referring to the Island's increasing budget and debt pressures.
Fitch ratings agency has cut Cyprus' sovereign credit rating from AA- to A- and is warning of another possible downgrade because of its banking sector’s large exposure to debt-laden Greece.
