Cyprus’ Sovereign Ratings Affirmed; Outlook Remains Positive

Ref: CY2 2 CRA00-0 1 1 5 A pr il 202 2

Cyprus’ Sovereign Ratings Affirmed; Outlook Remains Positive

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today an n ounced that it has affirmed the Republic of Cyprus’ Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) at ‘BB+’ and ‘B’, respectively. The Outlook for the ratings remains Positive.

Rating Rationale

The affirmation of the r atings and o utlook takes into account the faster than initially projected economic recovery , as well as the significant improvement in the public finances, with both the budget deficit and general government debt re turning to a more favourable path . The government continues to proactively manage debt by securing its financing needs through timely market access while building a substantial cash buffer to counter short-term shocks. The ratings also reflect the…