German Chancellor Angela Merkel travels to Cyprus Friday just hours after the international rating agency Moody's downgraded the heavily indebted island state's credit rating.
Merkel said Wednesday that the small euro member state would not receive special treatment in its bid for European aid to shore up its ailing economy.
Moody's downgraded Cyprus's bond rating by three notches from B3 to Caa3, increasing the pressure on the government as it attempts to negotiate a bailout for its embattled banks, which have been hit be the Greek debt crisis.
"Given that the resulting increase in the debt burden is likely to be unsustainable, Moody's believes there is a significantly increased likelihood that the Cypriot government may eventually default outright or press for a distressed exchange," Moody's said.
Merkel travels to Cyprus for a gathering of European Union conservative parties.