Cyprus and Malta ratings raised by Moody's

NEW YORK, Jan 3 (Reuters) - Moody's Investors Service raised the foreign and local currency credit ratings for Cyprus and Malta following their inclusion in the euro zone on Jan. 1, lifting the number of nations who use the euro currency to 15.

Moody's now rates Cyprus 'Aa3', up one notch from 'A1' and Malta at 'A1', up one notch from a rating of 'A2', the firm said in a statement.

The credit rating outlooks for the two small Mediterranean islands are now stable from positive. The two countries joined the European Union in 2004.

The country ceilings for debt and bank deposits were replaced with the euro zone's 'Aaa' ceiling, which also have a stable outlook.

"Moody's views the adoption of the euro by Cyprus and Malta as a significant credit positive because it all but eliminates the risk of a currency crisis, thereby insulating their economies from external financial shocks," Tristan Cooper, sovereign credit analyst at Moody's said in a statement. (Reporting by Daniel Bases, Editing by Chizu Nomiyama)