Standard & Poor's has announced that it has downgraded the long and short term credit ratings of the Republic of Cyprus sovereign issuer from 'B/B' to 'CCC+/C' with a negative outlook. According to the rating agency, the island's financial position is becoming increasingly delicate and the risk of default has increased.
"Presidential elections are scheduled for February and a final agreement on the international aid program has not yet been reached between Nicosia and the Troika," S&P said in a statement. This morning both the ECB executive adviser Joerg Asmussen and the president of the Eurogroup Jean-Claude Juncker ruled out the hypothesis of a haircut on Cypriot government bonds.
