Cypriot President Nicos Christodoulides has hailed the recent two-notch credit rating upgrade from Moody’s, describing it as a significant step for the country’s economic future. The rating agency raised Cyprus’s credit rating from Baa2 to A3, marking the island’s return to the “A” investment category for the first time since 2011, when the country was hit by a financial crisis and bailout interventions from the EU and the IMF.
In its assessment, Moody’s highlighted Cyprus’s substantial progress in improving its fiscal metrics and public debt. The credit agency noted that the country’s public debt ratio has seen a marked reduction from the high levels recorded in 2020, positioning Cyprus among the global leaders in debt reduction. Moody’s anticipates further declines in debt ratios over the medium term, contributing to a continued strengthening of public debt sustainability.
The upgrade also reflects solid economic growth, driven by expanding service sectors, including those related to corporate relocations, foreign direct investment (FDI), and reforms under Cyprus’s National Recovery and Resilience Plan (NRRP). Moody’s also acknowledged that the country’s banking sector has been stabilizing, with risks “contained” due to the ongoing deleveraging process and significant improvements in the credit profile of Cypriot banks.
President Christodoulides expressed pride in the achievement, emphasizing the importance of the upgrade for Cyprus’s economic trajectory. In a video statement shared on social media, he stated, “Today’s exceptionally important double-upgrade by Moody’s Rating Agency is a vote of confidence in the policies of the government and the economy of our country.” He credited the positive result to responsible fiscal policies, financial sector stability, and ongoing reforms, all of which are central to his administration’s agenda.
The President also noted that the upgrade would likely lead to increased foreign investment, the creation of new jobs, and a more dynamic economic growth outlook for Cyprus. “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 our country as a reliable and quality investment destination,” Christodoulides added.
Cyprus’s improved credit rating and the resulting investor confidence signal a bright future for the nation, with strengthened competitiveness and continued focus on policies aimed at enhancing the standard of living for its citizens.
