Breaking: Standard and Poor’s Rating firm has downgraded Cyprus’ credit rating one notch to Triple C.
As per Reuters:
Ratings agency Standard & Poor's cut its rating on Cyprus to triple-C from triple-C , warning "that in the absence of a credible alternative source of capital and fiscal financing, the risk of a disorderly credit event is rising."
Remember to put these things into context. We are dealing with a country the size of Nebraska, and the population of just over 1 million whose contribution to the entire European Union’s GDP is .25% and that’s being generous.
However, I can see how people in other debt stricken countries will panic and want their money out of their local banks too but rest assured…the EU might be ready to let Cyprus go but don’t think for a second it will let the bigger PIGS go. There’s the difference in my view. Cyprus may be the sacrificial lamb here and history has shown, countries that default usually go on to recover stronger than they were before.
