ECONOMY

Moody’s downgrades Cyprus to junk on Greek exposure

International ratings agency Moody’s downgraded euro member Cyprus into junk status Tuesday on heightened concerns over the exposure of its large banking sector to Greece.

The agency reduced its rating on Cyprus by one notch to Ba1 and assigned a negative outlook, meaning that further downgrades are possible.

Moody’s is the second agency to push the island nation’s credit rating to junk after Standard