Fitch Ratings announced on Wednesday that it has downgraded Cyprus’s credit outlook to “BBB” from “A-“, negative outlook.
Specifically, Fitch has downgraded the Republic of Cyprus΄s Long-term foreign and local currency Issuer Default Ratings (IDRs) to “BBB” from “A-“.
The Outlook on the Long-term IDRs is Negative.
The two-notch downgrade of Cyprus΄s ratings to “BBB” reflects the actual and anticipated fiscal slippage, compounded by Fitch΄s expectation that the sovereign will be unable to access the international debt markets in order to refinance an increasing debt maturity profile in H211 and H112, according to Chris Pryce, Director in Fitch΄s Sovereign Group.
The 2011 deficit is now expected to be close to 7% of GDP and not all of the increase, from 4%, since the agency΄s most recent analysis in June can be attributed to the naval base explosion, which took out half of Cyprus΄s electricity generating capacity, Pryce added.
(source: capital)
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
