Moody's downgrades two major Cyprus banks

Moody's ratings agency said it downgraded on Thursday the deposit and debt ratings of two major Cypriot commercial banks -- Marfin Popular Bank and Bank of Cyprus. Marfin's rating was cut to Ba2/Not Prime from Baa3/Prime-3 and Bank of Cyprus to Ba1/Not Prime from Baa2/Prime-2. Moody's also confirmed the deposit and debt ratings of Hellenic Bank at Ba1. It said the outlook on the ratings of all three banks is negative. The move came a day after Moody's downgraded its Cyprus government bond rating by two notches to Baa1 from A2, citing the eurozone member's weakening medium-term credit fundamentals, an explosion that destroyed its main power station and an increasingly fractious political environment.