NEW YORK (Reuters) - Moody's Investors Service cut its credit ratings on Cyprus sovereign debt by two notches to Ba3 from Ba1 on Wednesday, citing rising risks of a Greek exit from the euro currency and an already strained fiscal position.
The speculative grade credit for the European Union member, which is third smallest economy in the euro zone, is also on review for further downgrade, Moody's said in a statement.
Cyprus, most of whose population is Greek Cypriot, has close cultural, business and political links with Greece, but that relationship has not been without difficulties as Greece's economy has crumbled.
The weak credit position is exacerbated by limited access to international markets, Moody's said.
(Reporting By Daniel Bases; Editing by Leslie Adler)
