Market Commentary and Intraday News
Moody's cuts Cyprus' credit rating further
223 days ago
(AP:NICOSIA, Cyprus) Credit ratings agency Moody's downgrades Cyprus deeper into junk territory over fears that the amount of government support needed to prop up the country's stricken banks will choke off growth.
Moody's said in a statement Monday it had taken the country's score down by three notches to B3. It warned that the recapitalization needs of Cyprus' three largest lenders _ hit by exposure to the Greek economy and non-performing loans _ would push public debt to a massive 140 percent of gross domestic product. This could be too much to bear for a small country with bleak growth prospects over the next three to five years.
In June, the country asked for financial aid from the other 16 countries that use the euro to prop up its banks.
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