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Cyprus News Agency: News in English, 13-04-11
CONTENTS
[01] S&P revises Cyprus' outlook to stable in view of bailout agreement
[01] S&P revises Cyprus' outlook to stable in view of bailout agreement
Credit rating agency Standard & Poor`s revised the outlook on the
long-term rating on Cyprus to stable from negative, saying that the
immediate risk of a sovereign default has receded. At the same time, S&P
affirmed the ‘CCC/C' long- and short-term sovereign credit ratings on
Cyprus, noting that that the program implementation and economic risks
remain considerable.
"We expect the Cypriot government will agree to the terms of an up-to
€10 billion financial assistance program from the International
Monetary Fund (IMF) and the European Stability Mechanism (ESM)" S&P said
on Wednesday.
It is added that the program's first loan tranche will be disbursed
in time for the government to make a June 4 payment due on a
Eurobond. Moreover, the ratings agency says it expects Cyprus to
remain a member of the Eurozone, adding however the likelihood of
recently-imposed capital controls to remain, in some form, in order to
protect the country's banks from renewed deposit flight.
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