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Moody's downgrades Cyprus

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Moody's downgrades Cyprus

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Moody’s Investors’ Service has downgraded the credit rating of Cyprus two notches to Baa1.

The rating agency raised concerns about the country’s fiscal health after an explosion destroyed the main power station there .. wiping out over half of Cyprus’ electricity production.

Economists believe the economic impact from the blast will be at least one billion euros and may need a bailout.

Moody’s also expressed worries about Cypriot banks’ exposure to Greek debt.