Cyprus Achieves “A-” Credit Rating Upgrade from Fitch

Credit rating agency Fitch has upgraded Cyprus’ credit rating from BBB+ to A-, marking the second upgrade in three weeks.

Fitch attributed this positive change to Cyprus’ rapid reduction in public debt, robust fiscal surpluses, and minimal fiscal risks. The agency also highlighted the strong growth potential of the Cypriot economy, promising medium-term prospects, and improvements in the banking sector.

Fitch forecasts indicate that this trend will continue with Cyprus’ debt-to-GDP ratio expected to fall to 60% next year and further to 55.1% by 2026, significantly below the current Eurozone average of 89%.

Cyprus’ government surplus is projected to reach 3.9% of GDP this year, averaging 2.9% over the next two years. The authorities plan to maintain conservative expenditure and prudent fiscal policies.

President Nikos Christodoulides and Finance Minister Makis Keravnos welcomed the upgrade, citing it as a vote of confidence in Cyprus’ economic policies and a boost for attracting foreign investment.

This upgrade follows Moody’s recent assessment, which restored Cyprus to an A3 rating, the first since 2011, due to significant debt reduction since 2020.