Fitch cook the rating downgrade of Cyprus
Baku, March 27 (AZERTAC). International rating agency Fitch Ratings has placed the list on review for possible downgrade the long-term and short-term issuer default ratings of Cyprus in foreign and local currencies. This was the organization said.
Now long-term sovereign credit rating of Cyprus is at B. In January, Fitch downgraded it by two notches.
Previously, the agency lowered the ratings of the largest banks in Cyprus - Cyprus Popular Bank (People`s Bank and Laiki) and Bank of Cyprus - to default levels. Fitch downgraded the long-and short-term rating Laiki from level B to D (default), Bank of Cyprus - from level B to RD - (Restricted Default).
Key ratings Cyprus Hellenic Bank are submitted at the same level on the list for downward revision, the report said Fitch.
Note that prior to this international agency Moody`s lowered the ratings of Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank. Indicator of confidence in credit institutions dropped from the position to Saa2 Saa3.
All three banks have suffered heavy losses after the EU decision to write off massive debt of Greece, the banking sector is closely connected with the Cyprus.
"The situation in Cyprus is still uncertain, the risk of loss of bank deposits increased" - experts said Moody`s, adding that the government has no clear vision of the necessary steps to bring Cyprus crisis.
Previously, the Agency Standard & Poor`s downgraded the credit rating of Cyprus by one notch - from CCC + to CCC rating outlook - "negative."
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