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Moody’s Elevates Bank of Cyprus to A3 Rating: A Testament to Financial Fortitude

In a significant financial milestone, Moody’s has elevated the long-term deposit ratings for the Bank of Cyprus from Baa1 to A3. This achievement underscores the bank’s ongoing enhancement of its financial health.

The outlook remains stable, reinforcing the bank’s position as a beacon of stability in Greece and Cyprus, a testament highlighted amidst challenges. Moody’s attributes this upgrade to the continuous improvement in the bank’s asset quality and risk management.

Breaking new ground, the Bank of Cyprus is now the highest-rated establishment among its regional peers, a clear message of reliability and financial robustness.

Crucial contributors to this new rating include an increase in the tangible common equity (TCE) ratio to 17.1% by the end of 2023, and a decrease in non-performing exposures (NPE) to 3.6% from 6.5% in 2021.

Moody’s also notes the bank’s strong profitability, marked by a 21.3% return on tangible equity in 2023, and a cost-to-income ratio that fell to 35%. This financial agility is expected to persist through 2025, even with possible interest rate reductions influencing net interest income.

The report also lauds the bank’s liquidity and robust deposit base, describing its funding as primarily backed by low-cost retail deposits, comprising 88% of total funding. With a liquidity coverage ratio (LCR) at an impressive 341%, the bank’s solid stance is further solidified.

Furthermore, the bank’s counterparty risk ratings have seen a boost, reflecting confidence in its future potential. While the bank’s subordinated debt rating remains unchanged at Ba2, the stable outlook signifies a predicted continuation of solid solvency and profitability over the next 18 months.

If the Bank of Cyprus sustains high profitability combined with low asset risk, it stands on the brink of further upgrades.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

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