These upgrades represent a pivotal achievement for Cyprus, reflecting global trust in its economic policies and potential.
Back13/12/2024
Cyprus has garnered notable acknowledgment from the three leading credit rating agencies, Fitch Ratings, Moody’s and S&P. Fitch raised Cyprus' credit rating to A- from BBB+, highlighting the country’s fiscal discipline and strong economic growth. Meanwhile, Moody’s proceeded with a two-notch upgrade of the Cyprus economy to A3 from Baa2, with stable outlook, reflecting optimism about sustained fiscal and economic resilience. Last but not least, S&P upgraded the economy to A-' from 'BBB+ with a stable outlook.
Fitch’s upgrade to A- underscores key accomplishments by Cyprus. The agency praised the sharp reduction in public debt, consistent fiscal surpluses, and improvements in the banking sector. Cyprus’ debt-to-GDP ratio is among the most improved in Fitch's assessments this year.
Similarly, Moody’s recognized Cyprus' robust fiscal policies and promising economic trajectory. The agency attributed the upgrade to sustained fiscal surpluses and effective policymaking, which have bolstered confidence in the country’s economic resilience. Reforms in anti-corruption and the judiciary system further highlight Cyprus’ institutional strength and adaptability.
S&P Global Ratings recent upgrade of Cyprus to an 'A-' rating highlights the country’s resilience and economic advancement despite rising geopolitical risks in the region. The agency added that Cyprus is benefiting from labor and capital inflows, even with the known regional conflicts, and for achieving a robust fiscal performance with its third consecutive annual surplus.
These upgrades represent a pivotal achievement for Cyprus, reflecting global trust in its economic policies and potential. They solidify the island’s standing as an attractive hub for investment and business, showcasing its stability and growth within the Eurozone.
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