Cyprus election has no effect on sovereign ratings

Standard & Poor’s Ratings Services said that the results of the first round of the presidential election in Cyprus this weekend have no immediate effect on the sovereign ratings on the Republic of Cyprus (A/Positive/A-1).

The defeat of Cyprus’ President Tassos Papadopoulos in the first round of voting does, however, have a consequence for the reconciliation talks between the Greek and Turkish Cypriot communities, which is positive for longer term development on the island. Unlike Papadopoulos, who led the rejection of the Annan Plan in 2004, both Demetris Christofias, leader of the Communist Party (AKEL) and Ioannis Cassoulides, running as an independent but backed by the DISY party, have campaigned on the platform of resuming talks with representatives of the Turkish-occupied part of the island as soon as possible.