Cyprus – Sovereign Ratings Affirmed; Outlook Remains Stable
Content is restricted
Summary
Ref: CY2 3 CRA00-0 2 29 September 202 3
Cyprus – Sovereign Ratings Affirmed; Outlook Remains Stable
Rating Action
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Republic of Cyprus’ Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) at ‘BBB-’ and ‘A3’, respectively. The Outlook on the ratings remains Stable.
Rating Rationale
The affirmation of the ratings reflect s the demonstrated resilience of the economy and stronger fiscal fundamentals, with the budget position remaining in surplus and general government debt on a firmly downward trajectory . The government continues to proactively manage its debt maturity profile in order t o reduce refinancing risk s while a t the same time maintaining a substantial cash buffer to counter short-term shocks and external adversities. Government contingent liabilities from the banking…