In the S&P opinion, "Cyprus’ creditworthiness has deteriorated significantly since our last downgrade on Aug. 2, 2012, as domestic political constraints have prevented a timely agreement with the EU, IMF, and ECB (the “Troika”) on a financial support package."
The agency also sees the increasing risk in refinancing on the back of "government’s increased dependency on treasury bill issuance."
The Outlook remains "CreditWatch with negative implications" based on S&P view of the "likelihood of a further downgrade if Cyprus’ external and fiscal financing pressures escalate."
Concluding, "Standard & Poor’s Ratings Services lowered its long-term sovereign credit rating on the Republic of Cyprus to ‘B’ from ‘BB’. At the same time, we affirmed our short-term sovereign credit rating on Cyprus at ‘B’."