Moody’s raises Cyprus’ credit rating to Baa2

Moody’s Ratings has boosted Cyprus’ economic outlook to positive from stable, while affirming its long-term credit rating at Baa2, which stands two notches above investment grade, as reported by Xinhua on Sunday.

According to a statement released on Saturday via email, the rating agency cited its confidence in Cyprus’ potential for robust fiscal and debt outcomes in the coming years for the upgrade.

Moody’s anticipates that prudent fiscal policies and strong medium-term economic growth prospects will lead to substantial fiscal surpluses. The agency forecasts a fiscal surplus of approximately 2.3-2.4 per cent of annual GDP for 2024-25, slightly lower than the government’s projection of 2.8-2.9 per cent of GDP.

Furthermore, Cyprus is expected to witness a reduction in its public debt to below 65 per cent of GDP by 2025.

The country’s economic landscape has seen a remarkable turnaround since its near meltdown in 2013, which necessitated a Eurogroup bailout.

President Nikos Christodoulides and Finance Minister Makis Keravnos welcomed Moody’s decision, highlighting its significance and reaffirming the government’s commitment to fostering growth, employment, and maintaining sound public finances.