Cyprus Secures Fresh Affirmations of Credit Strength from Moody’s and Fitch

The Republic of Cyprus registered a double vote of confidence in the resilience of its economy this week, as both Moody’s and Fitch upheld the country’s investment-grade standing—while Fitch went a step further by shifting Cyprus’ outlook to “positive.” In a written statement, Finance Minister Makis Keravnos emphasized that these decisions reflect “the international houses' confidence in the government's fiscal performance and prudent economic policy.”

In his official announcement titled “Confirmation of the Creditworthiness of the Republic of Cyprus by ‘Fitch’ and ‘Moody's’ and Formation of its Outlook to Positive by ‘Fitch’,” Keravnos said the results highlight the momentum of the Cypriot economy, attributing its robust trajectory to “the rational policies consistently implemented by the government of the Republic of Cyprus and which foreign rating agencies appear to trust.” He added that the developments place him “in the pleasant position of welcoming with particular satisfaction two new ratings of Cyprus' creditworthiness, this time from ‘Moody's’ and ‘Fitch’.”

Moody’s, in its latest periodic assessment, reaffirmed Cyprus at an A3 investment grade, a judgment it says stems from “the country's high level of prosperity and the strong growth rates that they expect to continue in the medium term.”

Fitch Ratings likewise maintained Cyprus’ investment-grade standing at A-, while at the same time upgrading the nation’s outlook from stable to positive. According to the agency, this adjustment signals the expectation that “the positive course of public finances, macroeconomic data and developments in the balance of payments will allow the Agency to rank Cyprus at a higher level of its investment grade.”

Keravnos stressed that the government remains acutely aware of the difficulties posed by an “unstable and difficult international environment characterized by geopolitical turmoil.” For this reason, he said, authorities are proceeding “in a coordinated and methodical manner to consolidate a resilient economy, a fairer society, and a sustainable future for all.” He underscored that Cyprus’ economic strategy is “human-centered, balanced and prudent and based on the principles of fiscal stability and social justice, a fact that is appreciated internationally and is reflected in the consistently positive assessments of the credibility of the Cypriot economy that the Republic of Cyprus enjoys from all major Rating Agencies in recent years.”

By fLEXI tEAM