* S&P raises rating on Cyprus by one notch, to 'B'
* Fitch revises outlook to "stable" from "negative"
ATHENS, April 25 Credit agency Standard and
Poor's on Friday raised its rating on Cyprus to "B" from "B-",
saying the bailed-out Mediterranean island was meeting the terms
set by its foreign lenders and citing reduced risk to its debt
It is the agency's second upgrade of Cyprus since it came to
the brink of financial collapse last year, with a banking system
crippled by its exposure to debt-laden Greece and after it was
shut out of international financial markets.
Standard and Poor's said it could raise Cyprus' rating again
within the next 12 months if it continued to comply with the
measures outlined in a bailout plan agreed with the European
Union and the International Monetary Fund.
"Cyprus appears to be meeting the terms of the Economic
Adjustment Program financed by the European Stability Mechanism
and International Monetary Fund, suggesting reduced risk to
Cyprus' full and timely payment of its debt service," S&P said
in a statement.
Seperately, Fitch ratings revised its outlook on Cyprus to
stable from negative earlier on Friday, citing
better-than-expected economic performance and progress in reform
Fitch rates Cyprus B-, and Moody's Investors' Service at
Just a year ago, Cyprus, one of the smallest countries in
the euro zone, teetered on the brink of default and became the
first nation in the history of the euro zone to impose capital
controls to prevent a collapse of its banking system.
Cyprus signed up to a 10 billion euro bailout programme with
the EU and the IMF, on condition that it shut a major bank and
recapitalised a second lender with its clients' deposits.
Cyprus expects to return to international markets late next
year and may even test the waters earlier to gauge the appetite
for Cypriot debt, Cypriot President Nicos Anastasiades told
Reuters in an interview this month.
(Reporting by Renee Maltezou; Editing by Alison Williams)