Cyprus – Sovereign Ratings Affirmed; Outlook Remains Stable

Ref: CY2 3 CRA00-0 1 2 8 April 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 ratings reflect the demonstrated resilience of the economy and improving fiscal fundamentals, with the budget position returning to surplus and general government debt declining at a faster – than – expected pace. The government continues to proactively manage debt by securing its financing needs through timely market access while maintaining a substantial cash buffer to counter short-term shocks and external adversities. Government contingent liabilities from the banking sector have declined…