Stavrakis: S&P watch will not avert Cyprus bond plans

Standard and Poor's decision to place Cyprus on review for possible downgrade will not affect its plans to tap international markets later this year, Finance Minister Charilaos Stavrakis said on Thursday.

"It does not affect the plans of the government," Stavrakis said. "Certainly lower ratings theoretically could marginally increase borrowing costs, but …our ratings remain high in general," he said.

S&P placed Cyprus on review for possible downgrade on Wednesday, saying the A+ sovereign credit rating could be cut within three to four months if the government failed to act to improve its finances. The government plans to tap the international market this autumn for up to 1.0 billion euros.