Cyprus Secures ‘A’ Credit Rating as S&P Maintains Positive Outlook
The Ministry of Finance of Cyprus has announced that S&P Global Ratings has upgraded the credit rating of the country from ‘A-’ to ‘A’ while retaining a positive outlook. The decision marks the country’s return to the ‘A’ category for the first time since 2010.
According to the Ministry, S&P forecasts GDP growth of 2.7% and expects the government to continue recording fiscal surpluses. Public debt is projected to decline to slightly above 30% of GDP by 2029, while favourable labour market conditions and ongoing investment from local and international sources are expected to support domestic demand.
S&P also considers Cyprus’ anticipated current account deficit of approximately 7% over the 2027–2029 period sustainable.
The positive outlook leaves room for further rating improvement over the next 12 months, provided economic developments align with the agency’s expectations. Continued progress in reducing public debt and maintaining sound public finances could strengthen Cyprus’ position further.
The Ministry of Finance described the upgrade as an endorsement of the country’s economic progress and fiscal policy. The improved rating brings Cyprus closer to its highest historical assessment of ‘A+’ by S&P and signals renewed confidence in its financial standing among international investors.