S&P cuts Cyprus

Standard & Poor's said that it lowered the long-term sovereign credit rating on the Cyprus to A- from A and the short-term sovereign credit rating to A-2 from A-1.

The outlook remains negative.

The ratings consider the Cypriot financial system's significant exposure to the Hellenic Republic as well as the increasing likelihood that the Greek government will restructure its debt, which heightens the risk that a significant portion of the Cypriot government's large financial-sector contingent liabilities will become explicit liabilities migrating to the Cypriot government's balance sheet, the agency said.

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