Bank of Cyprus – Ratings Affirmed with a Stable Outlook

Bank of Cyprus – Ratings Affirmed with a Stable Outlook

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency (ST FCR) of Bank of Cyprus (BoC) at ‘BB-’ and ‘B’, respectively. At the same time, CI Ratings has affirmed BoC’s Bank Standalone Rating (BSR) of ‘bb-’, Core Financial Strength (CFS) rating of ‘bb-’, and Extraordinary Support Level (ESL) of Uncertain. The Outlook for the LT FCR and BSR is Stable.

The Bank’s BSR is derived from a CFS rating of ‘bb-’ and an Operating Environment Risk Anchor (OPERA) of ‘bb-’, the latter reflecting moderate economic and industry risks. The LT FCR is set at the same level as the BSR as it is uncertain whether extraordinary support would be forthcoming from the authorities in the event of financial distress. Our ESL assessment takes into account Cyprus’…