Cyprus’ Sovereign Ratings Affirmed; Outlook Revised to Stable

Cyprus’ Sovereign Ratings Affirmed; Outlook Revised to Stable

RATING ACTION

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Outlook for the Republic of Cyprus’ ratings to Stable from Positive. At the same time, the sovereign’s Long-Term Foreign Currency Rating (LT FC R ) and Short-Term Foreign Currency Rating (ST FCR) have been affirmed at ‘BB+’ and ‘B’ , respectively .

RATING RATIONALE

The change in the Outlook reflects CI Ratings’ expectation that the country’s economic performance in 2020 will be weaker than previously envisaged as a result of the coronavirus disease (COVID-19) outbreak and the subsequent sharp global economic slowdown. The Outlook revision also takes into account the fiscal impact of the government’s announced crisis response measures, as well as the risk that additional outlays will be needed to support the economy and safeguard public health. While these…