Friday September 19, 2014 Search
Weather | Athens
27o C
19o 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)  
Local lenders draw 5 bln for loans to SMEs
Tourism drives jobless rate down
Hardouvelis asks for some room to breathe
Athens could miss out on last bailout installment
Police, protesters clash during rally to mark Fyssas killing
Greek police fired teargas at protesters who hurled petrol bombs and stones in Athens on Thursday during a rally marking one year since the killing of an anti-fascism rapper by a far-right G...
Prescription limit to rein in EOPYY spending
In a bid to rein in its expenses, the country’s largest healthcare provider, EOPYY, is to announce a limit in the coming days on the number and type of diagnostic tests that doctors affiliat...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
High stakes after the Scottish vote
We will soon know whether the Scots voted for their country’s independence or whether they will remain citizens of the “United Kingdom of Great Britain and Northern Ireland.” What was alread...
COMMENTARY
Greek society’s and lenders’ fatigue
The issue of early elections continues to dog the coalition government despite all the official denials. That the administration is losing its cool is obvious. The political discourse has no...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Triumph for PAOK, historic result for Asteras in Europa League
2. Local lenders draw 5 bln for loans to SMEs
3. Tourism drives jobless rate down
4. Hardouvelis asks for some room to breathe
5. Athens could miss out on last bailout installment
6. Police, protesters clash during rally to mark Fyssas killing
more news
Today
This Week
1. SYRIZA ahead of ND, new opinion poll shows
2. Extradited Greek couple to face magistrate in Athens
3. National Bank of Greece said to pick advisers for Turkish sale
4. Man's charred remains retrieved from vehicle following accident
5. Unemployment at 26.6 percent in second quarter of 2014
6. Bank of Cyprus sells UK loan portfolio
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. Lost in the fog
5. Democracy under Pressure | Live Streaming
6. SYRIZA spokesman suggests gov't sought to stop NERIT airing Tsipras speech live
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.