Cyprus credit rating downgraded

Warning it could still make a bigger cut, credit ratings agency Moody’s has downgraded Cyprus by three notches. The island has gone from B3 to Caa3 with a negative outlook.

Citing the possibility of a government default, the island’s exposure to toxic debt from Greece and the need for recapitalisation of the banks, Moody’s is also concerned about a bailout that could be 17 billion euros – almost equivalent to Cyprus’ entire economic output. EuroNews