Fitch upgrades Bank of Cyprus, Hellenic Bank

Fitch Ratings said it upgraded Bank of Cyprus PCL’s long-term issuer default rating to CC from RD and Hellenic Bank PCL's long-term issuer default rating to CCC from RD.

The agency also upgraded the two banks' short-term issuer default ratings to C from RD.

Bank of Cyprus’ cc viability rating and Hellenic Bank’s ccc viability rating were affirmed.

Fitch said the upgrades follow the lifting of legal restrictions imposed by the Central Bank of Cyprus on the free movement of capital within Cyprus on May 30. In particular, capital controls on bank deposits within the country no longer apply. Fitch's view is that although restrictions remain on cross-border outward capital flows, these banks are now substantively able to service all their obligations.

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