Fitch maintains BoC’s covered bonds on negative watch

Fitch Ratings has maintained the Bank of Cyprus’ covered bonds B rating on negative watch.

Fitch is “continuing to monitor the impact of the current economic environment on the performance of the residential mortgage portfolio, as well as the evolution of the bank’s Issuing Default Rater (IDR)”, the agency said.

It further added that “the covered bonds’ rating remains vulnerable to a deterioration of the performance of the residential mortgage portfolio”.

Additionally, the rating agency notes that “should Cyprus’ Country Ceiling be downgraded below B, the covered bonds rating could be downgraded”.

Fitch expects to resolve the negative watch rating “once it completes its assessment on the performance of the residential mortgage portfolio and there is more visibility on the evolution of BOC’s IDR”.

 

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.