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DBRS Morningstar confirmed Cyprus’s long term credit rating to BBB

On November 13th, Friday, DBRS Morningstar- Global Credit Rating Agency, published and confirmed the Republic of Cyprus’s Long-Term Foreign and Local Currency – Issuer Ratings at BBB (low). At the same time, DBRS Morningstar confirmed the Republic of Cyprus’s Short-Term Foreign and Local Currency – Issuer Ratings at R-2 (middle). The trend on all ratings is Stable.

In the Press bulletin published by the DBRS Morningstar it was cited that “the Cyprus economy exhibited a less than expected economic contraction and that the risks to the ratings are broadly balanced risks despite the contraction due to the Covid-19 pandemic.” “The Cypriot economy contracted by a less-than-expected 5.5% year-on-year in the first half of 2020, less severely than the Euro area average. The fiscal surplus is expected to shift to a deficit, with the government debt-to-GDP ratio rising close to a still manageable 115% of GDP in 2020,”

Commenting on the rating of the DBRS, the Finance Minister of the Republic of Cyprus Constantinos Petrides stated that ”the Government will continue supporting economic activity so it would return to positive rates when the pandemic passes, both in terms of growth and employment as well as the public finances”.