Fitch Ratings upgrades Bank of Cyprus IDR to ‘BBB’

“Its ratings are also underpinned by stable deposit funding, sound profitability, satisfactory capitalisation and improved asset quality,”
Fitch Ratings has upgraded the Bank of Cyprus’ Long-Term Issuer Default Rating (IDR) to ‘BBB’ from ‘BBB-‘ and Viability Rating (VR) to ‘bbb’ from ‘bbb-‘.
The Outlook on the Long-Term IDR is Stable.
In a press release the credit agency says that “the upgrade reflects the improvement of the Cypriot operating environment score to ‘bbb’, which reflects our assessment of improved business and financial prospects for Cypriot banks due to continued economic growth and falling unemployment and private sector indebtedness.”
“The upgrade also factors in continued improvements in BoC’s standalone credit profile from a further reduced stock of legacy problem assets, sound profitability prospects and satisfactory capital buffers.”
According to Fitch Ratings the Bank’s ratings “reflect its strong competitive position as one of the leading domestic banks in the small Cypriot market.”
“Its ratings are also underpinned by stable deposit funding, sound profitability, satisfactory capitalisation and improved asset quality,” it adds.
Source: CNA