Moody’s positive on Cyprus banks

The positive outlook for the Cypriot banking system reflects Moody’s view that the fast-paced economic expansion will continue, supporting borrowers’ repayment capacity, asset values and new lending, Moody’s Investors Service said in a report on Tuesday.

“We have maintained our positive outlook for the Cypriot banking system,” said Melina Skouridou, a Moody’s assistant vice president and analyst who wrote the report.

“In our view, Cyprus’s economy will expand robustly, helping to improve the banks’ weak asset quality, as well as boosting their profits and capital,” she added.