Moody's Investor Service has announced that it has placed the long-term deposit ratings of the Bank of Cyprus on review for upgrade following the bank's successful completion of its €1 billion capital increase.
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".
Yesterday Moody's Investors Service downgraded Cyprus' bond ratings three notches further into junk territory and it's ratings on three Cypriot banks citing "profound difficulties" in the island's banking sector.
Ratings agency Standard & Poor's has cut Cyprus’ long-term sovereign credit rating a notch pushing it deeper into junk territory and placed it in on CreditWatch with negative implications.
Moody's Investor Service cut Cyprus' sovereign ratings to junk earlier today saying there was a heightened risk that the government would have to support the banks, which are heavily exposed to the Greek debt.
Moody’s Investors Service has downgraded Cyprus government bond ratings to Baa3 from Baa1 on the very high likelihood that the Cypriot government will need to contribute to the recapitalisation effort of the banking system.
Moody’s has downgraded the deposit and debt ratings of the Bank of Cyprus and the Marfin Popular Bank. According to their report “The country’s real estate market, which is a significant component of the banks’ loan books, remains a risk area with unclear growth prospects and weak demand”.
