Cypriot bonds upgraded to BBB-

Government bond yields in Cyprus fell to their lowest since late March on Monday, following a decision by S&P Global to lift the country’s credit rating to investment grade territory.

S&P late on Friday lifted Cyprus’s rating to BBB- from BB+, citing brighter growth prospects and consolidation in the banking sector.

That upgrade makes Cyprus eligible for European Central Bank bond purchases.

The country has a sub-investment grade rating from Fitch and Moody’s.

The country on Monday mandated banks to sell a 10-year government bond in a move analysts said was aimed at taking advantage of the positive sentiment following the upgrade.

[Reuters]