S&P rates Bank of Cyprus Holdings B-

S&P said it assigned a B- issuer rating to Bank of Cyprus Holdings plc, the nonoperating holding company of Bank of Cyprus PCL and a CCC rating to the subordinated tier 2 instruments the holding company plans to sell under its euro medium-term note program.

“The ratings on BoC Holdings reflect our assessment of the b+ group credit profile (GCP) for its consolidated activities with BoC, the operating entity, as well as BoC Holdings' NOHC status. As a result, its creditors are structurally subordinated to those of the operating bank subsidiary,” S&P said in a press release.

“We rate the subordinated T2 instruments to be issued by the NOHC under the EMTN program CCC. We do so by notching down from the stand-alone credit profile (b-). The two-notch deduction reflects subordination risk,” the agency said.

The outlook is stable, reflecting an expectation the group's creditworthiness will remain resilient through the ongoing shock over the next 12 months, the agency said.

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