Standard & Poor’s Rating service which assigns credit worthiness to various countries economies has downgraded the Republic of Cyprus to ‘B’ or ‘Junk’ status. The move comes just two months after a similar downgrade was issued in August with the agency also placing the country on a watch list for potential further downgrade.
The decision was taken based on the Republic of Cyprus’ failure to secure a bailout loan and warned that the local economy was likely to face a ‘severe banking crisis’.
Similarly, Moody’s, another credit grading organisation, have also downgraded the ROC economy to B3 – placing it lower down in the ‘junk status’ category.
Although still facing economic difficulty, Turkey maintains a BB status, the second highest non-investment rating.