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Wednesday, Oct 17, 2012 8:45 PM UTC

S&P downgrades Cyprus deeper into junk

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Topics: From the Wires,

NICOSIA, Cyprus (AP) — International ratings agency Standard & Poor’s has cut Cyprus’ credit rating to B, three notches deeper into junk because of the government’s delay in swiftly negotiating a bailout with potential creditors in order to support its ailing banks.

The agency also warned in a statement Wednesday that another downgrade could follow. It said bad domestic loans held by Cypriot banks have increased faster than expected, possibly raising the amount of money they would need to recapitalize.

That would, in turn, push the country’s debt to 130 percent of gross domestic product, making it difficult to service and increasing the risk that the debt may need to be restructured.

Cyprus asked for international financial aid in June to support its Greece-exposed banks.

Menelaos Hadjicostis

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Gripping photos: The people of the Turkey protests (slideshow)

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  • The protests take on a festive element as police forces move out of the park and square. Wearing a gas mask, this young man dances to traditional Turkish music in front of Taksim Square’s Ataturk Monument.

  • In Gezi Park since March 31st, this protester, originally caught off-guard by the Government’s teargas and water cannons, went out and bought a Russian army mask from WWII, preparing for what was to come.

  • This rambunctious boy seems to be enjoying the chaos. After taking this picture he threw a stone at the already destroyed building in the background.

  • Forming a line, the police face off directly with protesters in Taksim Square. After a while, they retreated and there was a general cheer – a back-and-forth dance that has been common since the beginning of this protest.

  • An elderly woman in Gezi Park reads the news. The tent community occupying the park was violently destroyed on June 16th.

  • Many different groups had set up booths to promote their cause in Taksim Square and Gezi Park. Standing in front of one, this man waves his flag while posing with conviction.

  • Many home-remedies are used to minimize the effects of tear gas. This woman has put a milky solution on her face, removing her mask after the tear gas dissipated. Before sunrise, the police came again for another round of teargasing.

  • People capitalize on the uprising -- selling flags, beer, gas masks, sky lanterns and spray paint to name just a few of the popular items.

  • On Monday morning, June 11, the police execute a strong offensive. Many plain-clothed police officers, like the ones seen here, clash with protesters in the side streets away from the main stand-off in Taksim.

  • The authorities seem to be most aggressive in the night, pushing protesters away from the square and park. After being teargassed this young woman catches her breath with other protesters on Siraselviler Street.

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