Fitch Ratings has today revised Hellenic Bank's Long-term Issuer Default Rating (IDR)from CCC to B- and Bank of Cyprus' IDR from CC to CCC.

As the firm states " These upgrades mainly reflect improved capital buffers following the completion of equity issuances and evidence of better deposit dynamics amid the gradual relaxation of capital controls, which were fully lifted by the authorities in early April 2015. BoC's rating actions also highlight progress made in asset de-leveraging, enabling a reduction of its reliance on central bank funding".

"However", the rating agency adds, "these banks' ratings remain deeply sub-investment grade to reflect material failure risk, mainly because of weak loan quality performance and, in the case of BoC, still-high funding imbalances".