Cyprus’ Sovereign Ratings Affirmed; Outlook Remains Stable
Content is restricted
Summary
Ref: CY21CRA00-01 19 March 2021
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 ‘BB+’ and ‘B’, respectively. At the same time, the Outlook for the ratings was affirmed as Stable.
Rating Rationale
The ratings and outlook reflect CI’s expectation that the economy will recover in the second half of 2021 and that the economic and fiscal disruption caused by the pandemic will dissipate over the forecast horizon. The ratings are underpinned by the benefits Cyprus enjoys as a member of the eurozone , including access to crisis funding mechanisms and a supportive monetary policy. The ratings are also supported by generally sound macroeconomic management and proactive public debt management, with the…