• Cuts Cyprus’s long term foreign and local currency issuer default ratings to BBB from A-
• Downgrade reflects fiscal slippage, expectations it will not access debt markets from H2 2011
• Expects budget deficit to reach 7% of GDP in 2011
• long term issuer default ratings outlook is negative
• Cyprus likely to require external official assistance to meet funding targets
• Unwillingness to implement austerity plan could trigger further downgrades