Cyprus Downgraded by Fitch to B Minus

International agency Fitch sent Cyprus’ credit rating deeper into junk territory with a one-notch downgrade to B minus over heightened uncertainty gripping the debt-laden country’s economy.

Fitch said in a statement Monday that there is a high risk that a 23 billion euros ($30 billion) bailout the country negotiated with its euro area partners and the IMF in March to rescue its deeply troubled banking sector and sagging economy could go off track.

The agency added that Cyprus cannot cope with addition shocks to its battered economy and warned of another possible downgrade.

The agency said that the country could experience a deeper recession than expected, while public debt will likely be higher than the 126 percent of gross domestic product that the rescue plan projects by 2015.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza