Moody’s upgrades Bank of Cyprus’ deposit ratings
International credit rating agency Moody’s has upgraded Bank of Cyprus’ long-term deposit ratings by one notch, from Baa1 to A3, with a stable outlook.
According to a press release by Bank of Cyprus, this is the highest rating currently held by any bank operating in Greece or Cyprus, reaffirming the institution’s stability and reliability.
Moody’s said the upgrade reflects the bank’s ongoing improvements in asset quality, the declining risks related to non-performing loans and foreclosed real estate, as well as its ability to sustain solid profitability and strong capital buffers.
The rating is also underpinned by Bank of Cyprus’ low-cost funding structure, supported by a wide retail deposit base, and its strong liquidity position. Moody’s expects these positive trends to continue, further strengthening the bank’s role in the regional financial system.
The stable outlook reflects expectations for a continued decline in residual asset risks and broadly stable financial metrics, supported by Cyprus’ resilient macroeconomic environment.
According to Moody’s, a further upgrade could be considered if the domestic operating environment improves and the bank enhances its financial indicators even more. Conversely, a deterioration in profitability or capital levels could lead to a downgrade.
Source: stockwatch.com.cy
Photo: stockwatch.com.cy
7 May 2025
