Moody's Investors Service has today downgraded Cyprus's government bond ratings by two notches to Ba3 from Ba1, and has placed the ratings on review for further possible downgrade. The key driver for today's rating action is the material increase in the likelihood of a Greek exit from the euro area, and the resulting increase in the likely amount of support that the government may have to extend to Cypriot banks. The two-notch downgrade reflects Moody's assessment that this risk is exacerbated by the fact that the country's finances are already strained and access to the international markets is still denied. Moody's ... (full story)