Fitch Upgrades Cyprus to A- with Stable Outlook Following Significant Debt Reduction

Earlier in the year, S&P Global Ratings also improved its outlook for Cyprus to BBB+ with a positive outlook, and Moody's upgraded the nation to A3 with a stable outlook.

Fitch Ratings has upgraded Cyprus’s long-term foreign-currency issuer default rating from BBB+ to A-, maintaining a stable outlook. This upgrade is attributed to a significant decrease in Cyprus’s public debt-to-GDP ratio, one of the largest reductions among countries rated by Fitch in recent years. The ratio is expected to drop from its peak of 113.5% in 2020 to 65.5% by 2024.

Earlier in the year, S&P Global Ratings also improved its outlook for Cyprus to BBB+ with a positive outlook, and Moody’s upgraded the nation to A3 with a stable outlook.

Fitch anticipates that Cyprus will achieve a general government surplus of 3.9% of GDP in 2024, along with a primary surplus of 5.3%, the highest within the European Union. The agency cited a strong commitment across Cyprus’s political spectrum to maintaining prudent fiscal policies, emphasizing debt reduction, enhancing revenue-raising capacity, and sustaining substantial cash buffers.

Source: pagenews.gr