MOSCOW, June 29 (RIA Novosti) - Standard & Poor’s Ratings Services has lowered its long- and short-term sovereign credit ratings on Cyprus to 'SD' (selective default) from 'CCC/C', the agency reported Friday.
The move came after the Cypriot government announced an exchange offer on some of its local law governed bonds.
According to S&P, the exchange materially changes the terms of the affected debt and constitutes what the agency considers a distressed exchange.
“We… consider the offer as distressed, rather than purely opportunistic, given limited financing options available to the government and our previous rating on the government's debt, 'CCC',” S&P wrote on its website.
