S&P Downgrades Cyprus Credit Rating Again

Rating agency Standard & Poor's has made a new downgrade of Cyprus's credit rating, this time with three degrees, from BB to B.

S&P's has moreover preserved the negative outlook for the troubled eurozone member.

The rating agency has motivated its move with what it called the inaction of authorities to manage the crisis and the delay in the offering of an internationa bailout.

S&P's argued that while the Cyprus government has not yet negotiated a bailout plan, external and budgeting risks have increased.

In early October, Bloomberg had reported that the Cypriot government is about to request help amounting to EUR 11 B.

Standard & Poor's has said it expects Cyprus's sovereign debt to hit 130% of GDP by the end of 2013.

Last week, Moody's has also downgraded the country's credit rating.

On his part, Cypriot Finance Minister Vassos Shiarly has stated that his cabinet is ready to start negotiations with the troika of creditors.

Last Thursday, another eurozone member - Spain - received a credit rating downgrade.

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