Sunday November 23, 2014 Search
Weather | Athens
18o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Moody's cuts Cyprus sovereign rating two notches to Ba3

Moody's Investors Service cut its credit ratings on Cyprus' sovereign debt by two notches on Wednesday, citing rising risks of a Greek exit from the euro currency and an already strained fiscal position.

The speculative grade credit for the European Union member, which is third-smallest economy in the euro zone, is also on review for further downgrade, Moody's said in a statement.

Cyprus, most of whose population is Greek Cypriot, has close cultural, business and political links with Greece. But that relationship has not been without difficulties as Greece's economy has crumbled.

The weak credit position is exacerbated by limited access to international markets, Moody's said.

Moody's rating cut, to Ba3 from Ba1, takes into account a new assumption that Cyprus will need to contribute capital support to its banking system in excess of a prior estimate of 5 to 10 percent of gross domestic product.

On Tuesday, Moody's cut the credit ratings on two Cypriot banks and put them on review for possible further downgrade because of the rising risks of a Greek exit from the euro zone. A third bank's rating was held but also put on review for downgrade.

Greece goes to the polls on Sunday, June 17 to vote in parliamentary elections after an inconclusive outcome in May. That previous election raised the possibility that a new government could backtrack from an agreement with European partners for a 130 billion euro bailout package.

A bigger risk of a euro exit by Greece could lead to faster withdrawals of deposits from Cypriot banks' Greek branches, thereby straining liquidity. If there were to be an exit, a redenominated Greek currency would likely trigger a default in Greece that would materially weaken the solvency of Cyprus' banks, Moody's has said.

Cyprus is rated BB-plus with a negative outlook by Standard & Poor's, two notches above Moody's new rating. Fitch has Cyprus at investment grade, albeit one notch away from junk status at BBB-minus, also with a negative outlook.

[Reuters]

ekathimerini.com , Thursday June 14, 2012 (08:42)  
Transfer tax to be based on actual property cost, not objective value
Key general meeting at OLP on Tuesday
Agenda
Carlsberg to use Greece as regional junction
Cyprus on agenda in Biden visit to Istanbul
The prospects for the resumption of stalled peace talks on Cyprus and the issue of energy security were among the matters discussed on Saturday by US Vice President Joe Biden and Turkish gov...
PASOK nixes Papandreou leadership challenge
The junior coalition partner PASOK rejected over the weekend a proposal by the partys former leader and ex-premier George Papandreou for the party to call an emergency congress and a subseq...
Inside News
INTERVIEW
Tokyo hopes to change the world
The 2020 Summer Olympic and Paralympic Games in Tokyo will serve as a springboard for the rebuilding of Japans image and economy following the triple blow of the earthquake, tsunami and nuc...
BASKETBALL
Big win for Greens, tight one for Reds
Panathinaikos scored a crucial as well as emphatic away win at Turow on Thursday that should see it qualify from its tough group to the top 16 of the Euroleague, while Olympiakos saw off vis...
Inside Sports
COMMENTARY
Extremism from a bygone era
There are times when we seem to be overcome by self-destructive madness. I hear various commentators and politicians speaking in extreme terms of a junta, of defections, gallows, collaborato...
EDITORIAL
No call for more games
Psychological warfare has been a part of the negotiations between the troika and Athens from the very start of the crisis. But the situation is much different now and troika decision-makers ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Transfer tax to be based on actual property cost, not objective value
2. Key general meeting at OLP on Tuesday
3. Agenda
4. Carlsberg to use Greece as regional junction
5. Cyprus on agenda in Biden visit to Istanbul
6. PASOK nixes Papandreou leadership challenge
more news
Today
This Week
1. Extremism from a bygone era
2. No call for more games
3. Carlsberg to use Greece as regional junction
4. Agenda
5. Key general meeting at OLP on Tuesday
6. PASOK nixes Papandreou leadership challenge
Today
This Week
1. Double quake on Atalanti fault line rattles Greek capital [Update]
2. Greece and Poland switch roles as young Greeks head to vibrant Eastern European country for better prospects
3. Biden heads to Istanbul amid tension over Cyprus EEZ violation
4. Anti-junta uprising anniversary to be marked amid tight security
5. Carlsberg takes control of Greek brewer Olympic Brewery [Update]
6. Every age has its collaborators
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.