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Fitch Upgrades Bank of Cyprus to 'B+'
December 7, 2022
Fitch Ratings has upgraded Bank of Cyprus (BoC) long-term issuer default rating (IDR) to 'B+' from 'B-' and viability rating (VR) to 'b+' from 'b-' – the outlook on the long-term IDR is positive.
The two-notch upgrade reflects the execution of the sale of €0.6 billion non-performing exposures (NPEs) and €0.1 billion foreclosed real-estate assets. The sale (project Helix 3) together with the organic reduction of impaired assets, has improved BoC's asset quality, resulting in a significant decline in the level of capital encumbered by legacy problem assets (NPEs and net foreclosed assets). The upgrade is also underpinned by Fitch's view of the resilience of the Cypriot's economy, even in light of growing economic uncertainties.