The Republic of Cyprus received a two-notch credit rating upgrade from Moody’s, moving from Baa2 to A3, with a stable outlook. This upgrade marks the first time Cyprus has entered the “A” investment category since the financial crisis of 2011 that led to bailouts from the EU and IMF. The upgrade is attributed to improved fiscal metrics, reduced public debt ratios, and solid economic growth driven by service sector expansion and investments.
President Nicos Christodoulides expressed pride in the upgrade, stating that it reflects the government’s responsible fiscal policies and ongoing reforms. He emphasized the importance of the upgrade in attracting quality foreign investments, creating new jobs, and strengthening Cyprus’ position as a reliable investment destination. The President highlighted the collective effort of the Cypriot people in achieving this success.
Moody’s also noted the significant strengthening of Cypriot banks and the continued deleveraging of the banking sector, which has helped contain banking sector risks. The agency expects further reductions in debt ratios and sustained economic growth over the medium term.
Overall, the credit rating upgrade is seen as a positive development for Cyprus, signaling increased prospects for economic growth, competitiveness, and social improvements for its citizens. The President emphasized that this success is a result of continuous efforts to improve the country’s economy and stability.
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