Double Upgrade of Cyprus’s Credit Rating by Moody’s

On 22 November 2024, the international rating agency Moody’s upgraded the credit rating of Cyprus by a double notch.

Cyprus’s senior unsecured and long-term issuer ratings were raised by Moody’s from Baa2 to A3, bringing them back to investment grade for the first time in 13 years. Now, in addition to having a lower credit risk and an upper-medium grade rating, Cyprus’ outlook has also changed from “positive” to “stable”.

According to the statement made by Moody’s, Cyprus is now among the nations with the biggest debt reductions globally, having drastically lowered its public debt index from the high levels of 2020. In the longer term, it is anticipated that debt ratios will continue to fall, supporting further improvements in the sustainability of public debt. In addition, significant foreign direct investment, corporate relocation, net migration, reforms, and investments related to the Recovery and Resilience Plan are all contributing to the steady expansion of the highly productive service sectors, which in turn is driving economic growth rates.

Moody’s ratings were welcomed by Cyprus President Nikos Christodoulides who described it “a vote of confidence” in the Government’s policies and the country’s economy.

According to President Christodoulides, the new upgrade paves the way for significant prospects, while enhancing the attraction of quality investments that contribute to the creation of new jobs, as well as to the government’s efforts to establish Cyprus as a reliable and quality investment destination.