Fitch downgrades Cyprus to 'B', outlook negative (Córdoba) - Fitch Ratings cut Cyprus' sovereign credit rating by 2 notches to 'B' from 'BB-', saying the government probably will have to increase support to the banking sector. The outlook on the long term debt is negative.

"Uncertainty regarding the capital needs of the cooperative banks remains. Including the latter, the total recapitalization costs of the banking sector could be up to EUR10 billion, although Fitch anticipates that this figure may include a degree of headroom ", Fitch said in a statement.

Cyprus is rated 'CCC+' with a negative outlook by S&P and 'Caa3' with a negative outlook by Moody's.