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Moody's reviews Cyprus for possible downgrade

Moody's reviews Cyprus for possible downgrade

Moody's rating agency has put Cyprus on notice for a possible downgrade of its credit rating amid concerns over its banks' large exposure to debt-ridden Greece.
Moody's said Thursday that the ratings review comes amid concerns over Greece's possible debt restructuring and the impact this could have on Cypriot banks and public finances.
The agency said Cypriot banks _ whose assets total 6.5 times of the island's gross domestic product _ have a "sizable" exposure to Greek government bonds and "significant" lending to the Greek private sector.
The notice comes after Moody's cut the island's credit grade by two notches to A2 from Aa3 in February, citing similar concerns.