Cyprus rating cut due to default risk: Moody's

SAN FRANCISCO (MarketWatch)
Moody's Investors Service downgrades its bond rating on Cyprus to Caa3 from B3, pointing to the country's rising debt burden driven by a need to recapitalize its banks
"Moody's believes there is a significantly increased likelihood that the Cypriot government may eventually default outright or press for a distressed exchange," analysts wrote in a statement Moody's maintained its negative outlook on the rating