London, 12 July 2013 -- In its annual credit report on Cyprus, Moody's Investors Service says that the country's risk of another default over the coming years remains elevated due to very substantial risks to the country's economic performance and, as a result, the government's finances. This is reflected in the negative outlook on the Caa3 rating of the government. Although it is not the rating agency's central scenario, Moody's sees a material risk of a Cypriot exit from the euro area, which is captured in the Caa2 country ceiling.

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