Cyprus, Malta ratings upgraded on final euro decision - Fitch |
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Thu, 12 Jul 2007 11:15
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MUMBAI (Thomson Financial) - Fitch Ratings said it has upgraded the ratings of Cyprus and Malta following the European Union Council's decision that both countries have met the Maastricht criteria and will adopt the euro on Jan 1, 2008.The ratings agency upgraded the long-term foreign currency issuer default ratings of Cyprus to 'AA-' from 'A+' and to 'A+' from 'A' for Malta.Fitch said it is also aligning the foreign and local currency issuer default ratings as both countries' currencies are assimilated to the euro.The local currency issuer default ratings have been revised to 'AA-' from 'AA' for Cyprus and to 'A+' from 'AA-' for Malta.The long-term issuer default rating outlooks for both countries have been changed to stable from positive, Fitch said.Fitch said the country ceilings of both countries have been upgraded to 'AAA' from 'AA+' for Cyprus and 'AA' for Malta.Cyprus's short-term foreign currency issuer default rating has been upgraded to 'F1+' from 'F1', while Malta's short-term foreign currency issuer default rating is affirmed at 'F1'.The European Council's acceptance of Cyprus and Malta into the euro area justifies an immediate upgrade in the ratings as the euro area membership enhances sovereign external creditworthiness, the ratings agency said.The benefits of membership to the euro area include access to the euro area's credit strengths, greater price transparency, lower transaction costs, increased investment, trade and capital flows and lower capital costs, Fitch said.TFN.newsdesk@thomson.comans/manCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Malta ratings affirmed on continued fiscal consolidation - S&P UPDATE 