ECB assessment results positive, while Cyprus’ credit ratings upgrade to B+
According to the official results announced on 26 October 2014, three Cypriot banks completed the European Central Bank`s comprehensive assessment with a capital surplus, whereas one bank completed the exercise with a manageable shortfall.
According to the Ministry of Finance, these results confirm the final stabilization and restoration of confidence in the financial system of Cyprus and the positive outlook that is formed for the Cypriot economy.
Moreover, the Central Bank of Cyprus Governor Chrystalla Georghadji pointed out that: “The results are particularly positive for the Cypriot economy, since they demonstrate that the actions taken during 2014 and all the efforts and actions for boosting the banking sector were more than satisfactory , also adding that they “will contribute to strengthening depositors` trust in Cypriot credit institutions, which in turn will be able to contribute to the effort for economic growth.”
Meanwhile, Standard & Poor’s ratings agency raised, on 24 October 2014 its long-term foreign and local currency sovereign credit ratings on Cyprus to ‘B+’ from ‘B’. According to S&P: “The upgrade reflects our view that Cyprus’ economic and budgetary performance has been more positive than we expected over the past six months.” Commenting on the upgrade, the Deputy Government Spokesman pointed out in a written statement that: “The efforts and commitment of the Government for reform and modernization of the Cyprus economy and the state, render tangible results, since the new upgrading by Standard and Poor’s demonstrates the international confidence that the Cypriot economy is regaining. It is very clear that the effort must continue with persistence and devotion to our goals, which can be achieved through the only feasible course we must cover.”
In the meantime, Fitch Ratings also revised on Cyprus's Outlooks to Positive from Stable, while affirming its Long -term foreign and local currency Issuer Default Ratings at 'B-'.
Source: Press and Information Office
Source of the photo: Press and Information Office