Cyprus – Outlook Revised to Positive ; Sovereign Ratings Affirmed
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Summary
Ref: CY2 4 CRA00-0 1 29 March 2024
Cyprus – Outlook Revised to Positive ; Sovereign Ratings Affirmed
Rating Action
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Outlook on the Republic of Cyprus’ Long-Term Foreign Currency Rating (LT FCR) to Positive from Stable. At the same time, CI Ratings has affirmed the sovereign’s LT FCR and Short-Term FCR (ST FCR) at ‘BBB-’ and ‘A3’, respectively .
Rating Rationale
The revision of the O utlook reflects the faster than projected decline in general government debt due to consistent primary fiscal surpluses , as well as proactive debt management. The government continues to manage its debt maturity profile in order to reduce refinancing risks while at the same time maintaining an increasing cash buffer to counter short-term shocks and external adversities. The rating action also takes into account the progress …