Cyprus’ Sovereign Rating s Affirmed with a Positive Outlook
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Summary
Ref: CY1 9 CRA00- 2 1 3 th September 2019
Cyprus’ Sovereign Rating s Affirmed with a Positive Outlook
RATING ACTION
Capital Intelligence Ratings (CI Ratings or CI), the international credit rating agency, today announced that it has affirmed the Republic of Cyprus’ Long-Term Foreign Currency Rating (LT FC R ) at ‘BB+’ and its Short-Term Foreign Currency Rating (ST FC R ) at ‘B’. The LT FCR Outlook remains Positive.
RATING RATIONALE
The ratings and outlook reflect the continued strong performance of the economy , declining unemployment , improving public finances and the ongoing recover y of the banking sector. In addition, legislative and structural reforms have helped to increase Cyprus’ institutional strength. The ratings are constra ined by the private sector’s large debt hangover, the still high level of non-performing exposures (NPEs) in the banking sector, a s…