Cyprus – Sovereign Ratings Upgraded; Outlook Remains Positive

Ref: CY2 4 CRA00-0 2 2 7 September 2024

Cyprus – Sovereign Ratings Upgraded; Outlook Remains Positive

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has upgraded the Republic of Cyprus’ Long-Term Foreign Currency Rating (LT FCR) and Short-Term FCR (ST FCR) to ‘BBB’ and ‘A2’, respectively , from ‘BBB-’ and ‘A3’ . The Outlook for the rating s remains Positive.

Rating Rationale

The upgrade reflects the continued improvement in the public finances, including persistent budget surpluses and a rapid decline in general government debt, with the debt to GDP ratio projected to d rop below 60% in 2026. The government continues to manage its debt maturity profile in order to reduce refinancing risks while maintaining an increasing cash buffer to counter short-term shocks and external adversities. The upgrade takes into consideration the significant…