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S&P Upgrades Bank of Cyprus To Investment Grade With “BBB-” Rating

S&P Global Ratings has upgraded the Bank of Cyprus to “BBB-” from ‘BB+’, marking a significant milestone for both the bank and the broader Cypriot banking sector. This upgrade reflects the bank’s improved financial stability and creditworthiness, along with the country’s favorable economic conditions.

Key factors contributing To The upgrade include:

  1. Strengthened Liquidity and Capital Ratios: As of mid-2024, the Bank of Cyprus boasts a net stable funding ratio of 188% and a liquidity coverage ratio of 328%, indicating a solid financial position and reduced risk of deposit outflows.
  2. Improved Access to Capital Markets: The bank has gained better access to international capital markets, supported by Cyprus’s strong economic momentum and its improved credit standing. This has enhanced investor confidence and facilitated easier access to foreign capital.
  3. Resilient Profitability and Capitalization: Despite declining interest rates, the Bank of Cyprus is expected to maintain strong profitability, bolstered by its strategic hedging positions and ongoing efficiency improvements. The bank’s capital ratio is forecast to remain robust over the next 18-24 months.
  4. Funding Stability: Cypriot banks, including Bank of Cyprus, have made significant strides in reducing reliance on less stable non-resident deposits. Additionally, improvements in the loan-to-core deposit ratio have enhanced the overall stability of the banking sector’s funding base.
  5. Supportive Economic Environment: Cyprus’s economic outlook remains positive, even amidst interest rate reductions, contributing to a stable and optimistic growth trajectory for the Bank of Cyprus.

This upgrade to investment grade reinforces Bank of Cyprus’s solid position in the regional financial landscape and is expected to bolster investor confidence further.

Real Or Artificial Christmas Tree: Which Is Better For The Environment?

Choosing between a real and artificial Christmas tree is an annual dilemma, but the environmental impact depends on more than the type of tree. Its production, transport, how long it is used and what happens to it after the holidays all matter.

Artificial trees can spread their manufacturing footprint over many years, while locally grown real trees can be a lower-impact option if responsibly sourced and properly recycled. Renting a living tree is another alternative.

Artificial Trees Need Years Of Use To Be Sustainable

The environmental case for artificial trees depends largely on how long they remain in use. Manufacturing and transporting plastic trees generates emissions, which are spread over each year of use.

According to the Carbon Trust, an artificial tree needs to be used for seven to 20 years to have a lower carbon footprint than a real one.

However, some consumers replace artificial trees much sooner. Research published in 2017 found that 14% of artificial-tree buyers in the UK planned to discard theirs after just one season.

“If you’ve got a fake tree already, keep using it – make it last as long as possible,” says Emi Murphy, a tree campaigner at Friends of the Earth. She recommends considering more sustainable alternatives when an existing tree eventually needs replacing.

Buying a secondhand artificial tree from a charity shop or online marketplace can also avoid the environmental costs of manufacturing a new one.

Choosing A Responsibly Grown Real Tree

For households that do not plan to keep an artificial tree for many years, a fresh-cut tree may be a better option, particularly if it is grown locally and responsibly.

Certification from the Forest Stewardship Council (FSC) can help identify trees from responsibly managed sources. Buying locally can also reduce transport emissions, as many trees sold across Europe are shipped from major producers in countries such as Denmark and Germany.

Consumers can ask suppliers where their trees were grown and how the land is managed. Buying directly from a nearby farm can also support regional growers.

Renting A Living Christmas Tree

Renting a potted tree offers another option. Customers receive a living tree for the holiday season and return it afterwards so it can be cared for and reused.

London Christmas Tree Rental delivers potted trees in early December and collects them after the holidays. Co-founder Catherine Loveless said the idea came from concerns about trees being grown for only a few weeks of use before being discarded.

“It just felt so wasteful for these beautiful trees to grow just for the sake of three weeks of our pleasure,” Loveless told Euronews Earth.

However, the environmental benefits depend on whether the tree stays healthy, survives after collection and can be reused in subsequent seasons. Transport and ongoing care also need to be considered.

How To Dispose Of A Christmas Tree

What happens after the holidays is another important part of a tree’s environmental footprint.

According to the Carbon Trust, an average two-metre real tree sent to landfill produces around 16 kilograms of carbon dioxide, as well as methane during decomposition. Chipping or burning the tree can reduce its carbon footprint by up to 80%.

Households should check whether their local authority offers Christmas tree collection. Collected trees may be chipped for paths or composted for use in public green spaces.

Artificial trees are more difficult to recycle because they combine materials such as plastic and metal. If a tree is still in good condition, donating it to a charity, church or community organisation can extend its useful life and prevent unnecessary waste.

Which Christmas Tree Is The Best Choice?

There is no single answer for every household. Keeping an artificial tree for as long as possible is often the most practical option if you already own one. Those buying a real tree can reduce its impact by choosing a responsibly grown local option and arranging proper recycling. Renting a living tree may also work where providers can reliably collect, maintain and reuse it.

Ultimately, the most sustainable choice depends on making the tree last, reducing unnecessary transport and planning how it will be reused or disposed of after the holidays.

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