The European Union's top economic official Olli Rehn was quoted on Friday as ruling out a debt restructuring for euro zone member Cyprus, currently in talks with the EU and the IMF on a financial rescue package.
"A haircut is not an option for us," Rehn, the European Economic and Monetary Affairs Commissioner, told the German business daily Handelsblatt in an interview.
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Ratings agency Moody's slashed Cyprus's credit rating three notches late on Thursday on an expected rise in the Mediterranean island's debt burden. Cyprus applied for a financial rescue last June after its banks suffered huge losses on the EU-approved writedown on Greece's debt.
(Reporting by Gareth Jonesm editing by Erik Kirschbaum)