International rating agency Fitch recently affirmed Cyprus's long-term foreign and local currency ratings at B-/CCC and confirmed the country's senior unsecured bond ratings at B-/CCC.
In a statement, Fitch noted that the outlook for Cyprus's long-term foreign currency Issuer Default Rating (IDR) remains negative, while the country ceiling and short-term foreign currency IDR were affirmed at B.
Fitch has revised its 2013 GDP forecast for Cyprus to a 7% contraction, compared to the previous expectation of a nearly 9% decline, noting that the Cypriot economy is showing initial signs of positive adjustment. The government debt-to-GDP ratio is expected to peak at slightly above 130% in 2016.
