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Bank of Cyprus deposit ratings for upgrade

Moody’s Investor Service has announced that it has placed the long-term deposit ratings of the Bank of Cyprus on review for upgrade following the bank’s successful completion of its €1 billion capital increase.

Bank of Cyprus executives

Bank of Cyprus executives John Hourican (Group CEO) and Chris Hassapis (Chairman)

ACCORDING to an announcement yesterday by Moody’s Investors Service, the ratings agency has placed the long-term deposit ratings of Bank of Cyprus on review for an upgrade.

Moody’s action reflects the successful completion of the Bank’s €1 billion capital increase, which was approved by shareholders on 28 August, and which will significantly strengthen the bank’s capital buffers and improve its funding and liquidity profile.

According to Moody’s Rating Action, the review will focus on a forward-looking assessment of the extent to which the strengthened capital and liquidity levels will buffer the bank against continued asset-quality pressures, stemming from the still-stressed domestic operating environment.

This review will focus on the credit implications of:

  • the final form of the legislative amendments to the foreclosure framework in Cyprus, which will influence the bank’s ability to sell collateral and, in turn, manage provisioning and capital levels; and
  • the outcome of the European Central Bank’s (ECB) comprehensive assessment in October, which will determine any further potential capital needs.

Meanwhile the Bank of Cyprus announced on Monday that it expects its shares to be re-listed on the Cypriot and Athens stock exchanges by the end of October.

Readers' comments

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  • Mike says:

    Well that at least is good news for BOC. Whether or not it offers any kind of comfort to depositors is for them to decide. For my part there are far too many doubts surrounding the foreclosures bill final draft, far too many conflicting self interests in the legislature and allegedly far too many hidden NPLs which the Bank has no hope of ever recovering and due to it’s protectionist policies may be forced to cover from Bank capital and deposits. Long term trust will now need to be earned with actions not just rhetoric and buzz words.

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