Fitch Downgrades 3 Cypriot Banks to 'BB' from 'BB+'

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FXstreet.com (San Francisco) - Fitch Ratings has downgraded "Bank of Cyprus (BOC), Cyprus Popular Bank ( CPB ) and Hellenic Bank's (HB) Long-term Issuer Default Ratings (IDR) and Support Rating Floors ( SRF ) to 'BB' from 'BB+' following the sovereign rating downgrade," according to a press released published by Fitch.

"The downgrade of BOC, CPB and HB's support-driven Long-term IDRs reflects Fitch's assessment that the state's ability to support its major banks has reduced, as reflected in Cyprus' sovereign downgrade," says the release.

"Fitch estimates that the Cypriot government may need to provide up to EUR6bn of bank support (which includes the EUR1.8bn to restore CPB's capital base). Fitch acknowledges that its estimates of the potential losses and capital needs of Cypriot banks are subject to considerable uncertainty and are conservative."



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This article appears in: Investing , Forex and Currencies

Referenced Stocks: CPB , SRF

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