S&P downgrades Cyprus rating into junk territoryOctober 18, 2012 - 09:12 AMT PanARMENIAN.Net - Standard & Poor's Ratings Services downgraded Cyprus's sovereign ratings three notches further into junk territory, saying the island nation's creditworthiness had deteriorated significantly since its ratings were lowered in August, The Wall Street Journal reports. S&P has Cyprus at B, or five levels into junk category, and said the ratings remain on review. The ratings firm had cut Cyprus's rating to double-B in August, putting it two levels into junk territory and placed it on watch for further downgrade. S&P noted that the government hasn't negotiated a critical loan package, while the nation is facing a severe banking crisis, deteriorating consumer and investor confidence, and exposure to Greece's debt and economic crises. A further downgrade is possible if Cyprus's financing pressures escalate, S&P said. S&P's downgrade comes slightly more than a week after Moody's Investors Service lowered Cyprus's bond ratings three notches further into junk, citing the "profound difficulties" in the island nation's banking sector. Moody's downgraded Cyprus's ratings to B3, placing it six levels into junk territory. The downgrade ended a review launched in June. The outlook is negative. In June, Fitch cut its rating on Cyprus to double-B-plus, one level into junk territory. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Titus, Bilirakis lead legislation to sanction Azerbaijani war criminals Representatives Dina Titus (D-NV) and Gus Bilirakis (R-FL) have introduced the bipartisan legislation. Azerbaijan must respect human rights, Scholz tells Aliyev German Chancellor Olaf Scholz has called for greater respect for human rights in Azerbaijan. Armenia: Defense Ministry warns against involving army in political processes The Ministry’s statement came after a video surfaced online, showing soldiers joining the protests in Tavush. Scholz hopes Armenia-Azerbaijan peace treaty will be signed this year German Chancellor Olaf Scholz hopes that a peace treaty between Armenia and Azerbaijan will be signed this year. |