Cyprus – Sovereign Ratings Affirmed; Outlook Remains Stable

20 March 2026

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) of the Republic of Cyprus at ‘BBB+’. At the same time, CI Ratings has affirmed the sovereign’s Short-Term FCR (ST FCR) at ‘A2’. The Outlook for the ratings remains Stable.

Rating Rationale

The ratings are supported by the sustained strengthening of the public finances, which is reflected in persistent general government budget surpluses, declining government debt, and low short- to medium-term fiscal risks. Active public debt management has helped reduce refinancing pressures, while sizeable government cash buffers provide a strong safeguard against near-term shocks. The ratings also reflect the continued reduction in contingent liabilities stemming from the banking sector, underpinned by a continued decline in macro-financial imbalances and improving banking sector resilience.

The ratings are…