Moody’s puts Cyprus on notice(roc)

wanderer


Joined: 05/02/2009
Posts: 1653

Message Posted:
14/01/2011 16:59

MOODY’S ratings agency yesterday put the Cyprus economy on notice of review for a possible downgrade, saying the 2011 budget had failed to address structural issues that could undermine the government’s fiscal strength in the medium to long term.

The ratings agency put the island’s Aa3 government bond ratings on review, citing the island's deteriorating fiscal standing and banks' high exposure to Greece.

The news prompted the private business community and the opposition to lash out at the government calling for immediate steps to prevent a downgrade from happening.



Moody's said Cyprus’ rating could be adjusted downwards by more than one notch in view of a recent deterioration in Cyprus' fiscal situation, competitiveness issues as well as the banking sector's exposure to Greece

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