The one-off tax on bank deposits in Cyprus would have negative consequences for depositors and creditors, ratings agency Moody's said Monday.
The risk of capital flight from other countries hit by the euro crisis was heightened, Moody's said, dpa reported.
The contagion effect would be less with the bond markets, the agency said, stating that the danger of a debt restructuring - such as that in Greece in which bondholders were forced to relinquish a great portion of their capital - has been averted.