More positive news for Cyprus from Fitch Ratings within just a few days.
Fitch has upgraded Bank of Cyprus’s long-term Issuer Default Rating (IDR) to ‘CCC’ from ‘CC’ and Hellenic Bank’s long-term IDR to ‘B-‘, with a Stable Outlook, from ‘CCC’. Moreover, the agency has upgraded Bank of Cyprus’s Viability Rating (VR) to ‘ccc’ from ‘cc’ and Hellenic Bank’s VR to ‘b-‘ from ‘ccc’. Hellenic Bank’s Short-term IDR has also been upgraded to ‘B’ from ‘C’.
Fitch explained that these upgrades are a result of improved capital buffers following the completion of equity issuances and better deposit dynamics amid the gradual lifting of capital controls, which were fully lifted in early April 2015.