Fitch places Cyprus on rating watch negative

FXstreet.com (San Francisco) - Fitch Ratings has decided to placed Cyprus under review to decide within cut or maintain its rating. In its own words, they have "placed Cyprus's Long-term foreign and local currency Issuer Default Ratings (IDRs) of 'B' and Short-term IDR of 'B' on Rating Watch Negative (RWN). At the same time, the agency has revised the Country Ceiling to 'B'."

The Agency believes that the banking system will have profound negative implications in the domestic economy, "which heightens the risk to public finances."