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Bank of Cyprus outlook revised to positive by Fitch Ratings
December 16, 2021
American credit rating agency Fitch Ratings announced on Wednesday that it has revised the Bank of Cyprus’ outlook to positive from negative, while at the same time affirming the bank’s Long-Term Issuer Default Rating (IDR) at ‘B-‘ and Viability Rating (VR) at ‘b-‘.
The agency attributes the outlook revision to the bank’s recent agreement to offload €600 million in non-performing exposures (NPEs) and €121 million in foreclosed real estate assets.
The agreement, titled Helix 3, will upgrade the Bank of Cyprus’ asset quality while decreasing capital encumbrance caused by unreserved problematic assets, including the aforementioned non-performing exposures and seized property assets.