Topic: Global financial crisis
MOSCOW, October 18 (RIA Novosti)
- Cyprus May Seek Foreign Aid Equal to GDP
- Cyprus Asks Russia For 5 Bln Euro Loan
- Cyprus Seeks 10 Bln Euro Aid from Russia, China
- Moody’s Downgrades Cyprus Govt. Bond Ratings to Ba3 from Ba1
Standard & Poor's Ratings Services has lowered its long-term sovereign credit rating on the Republic of Cyprus to 'B' from 'BB', the ratings agency reported.
S&P has also affirmed its short-term sovereign credit rating on Cyprus at 'B'.
“The long-term rating remains on CreditWatch with negative implications, where it was initially placed on August 1, 2012,” the agency said in a press release on Wednesday.
“The downgrade reflects our view that Cyprus' creditworthiness has deteriorated since the last downgrade on August 2, 2012, as the government has not yet negotiated a support package, while external and fiscal risks have risen,” it said.
According to S&P, electoral considerations prior to the February 2013 presidential polls have contributed to policy inertia at a time when the country faces a banking crisis, in part triggered by the involvement of Cypriot banks in the restructuring of Greece’s debt in early 2012.
Add to blog
You may place this material on your blog by copying the link.
Image Galleries: Verkhovna Rada Elections in Ukraine: Darth Vader and Friends
Infographics: Nobel Peace Prize