December 23, 2012

S&P cuts Cyprus rating to CCC+

Standard and Poor's slashed Cyprus' credit rating Thursday by two notches to CCC+, saying the eurozone member was facing increasing financial pressure, with bailout negotiations still unfinished.

"With the government's financing options increasingly limited -- coupled with what we view as the hesitant attitude of Cyprus' eurozone partners toward sharing the cost of a severe banking crisis -- we view the risk of a sovereign debt default as considerable and rising," the ratings agency said.
The S&P downgrade puts Cyprus even further into junk territory. It also issued a negative outlook.

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