It referes to changes (deletion/updates) to the underlying table not the cursor.

>In this case the cursor is not updated in any of the sub procedures.
>
>>From DECLARE CURSOR in BOL:
>>
>>"If a row is deleted, an attempt to fetch the row returns an @@FETCH_STATUS of -2. Updates of key values from outside the cursor resemble a delete of the old row followed by an insert of the new row. The row with the new values is not visible, and attempts to fetch the row with the old values return an @@FETCH_STATUS of -2."
>>