Filenews 15 December 2023
Standard & Poor's (S&P) upgraded Bank of Cyprus' long-term credit rating to "BB" from "BB-", with positive prospects
S&P Global Ratings upgraded Bank of Cyprus' long-term credit rating to "BB" from "BB-" and confirmed its short-term rating of "B". It also upgraded BOC's long-term counterparty resolution rating (RCR) to "BBB-/A-3" from "BB+/B".
The rationale of the S&P was based on the significant progress made by Cypriot banks towards balancing their funding profile, while reducing dependence on foreign depositors, the improved operating environment for Cypriot banks and profitability prospects which have improved due to higher interest rates. improving the efficiency and containment of Bank of Cyprus' credit losses.
In addition, S&P acknowledged that the Bank is able to generate capital from organic profitability, despite returning to dividend distributions in 2023 (from full-year 2022 earnings).
