Cyprus – Sovereign Ratings Upgraded ; Outlook Revised to Stable

Ref: CY2 2 CRA00-0 2 21 October 202 2

Cyprus – Sovereign Ratings Upgraded ; Outlook Revised to Stable

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 Foreign Currency Rating (ST FCR) to ‘BBB-’ and ‘A3’, respectively, from ‘BB+’ and ‘B’. At the same time, CI Ratings has revised the Outlook on the ratings to Stable from Positive.

Rating Rationale

The upgrade reflects the demonstrated resilience of the economy and improving fiscal fundamentals, with both the budget deficit and general government debt returning more quickly than expected to a sustainable path. 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. Government c…