Standard & Poor's Ratings Services on Wednesday raised its outlook on Cyprus to stable from negative, saying it expects the troubled government to agree to the terms of a bailout, averting any immediate risk of a sovereign default.
Cyprus, one of the euro zone's smallest economies, has been forced to wind down one of its largest banks and slap losses on uninsured deposits in a second in order to qualify for a 10 billion euro lifeline from the European Union and the International Monetary Fund.
S&P rates the island CCC. It said it would likely lower the rating if, contrary to its expectations, the Cypriot government rejected the bailout terms. It would consider raising the rating if the economy were to stabilize sooner and at higher levels.
http://www.reuters.com/article/2013/04/10/us-cyprus-rating-sandp-idUSBRE9390TF20130410
