Moody’s Investors Service has raised Cyprus’ credit rating by two levels, from Baa2 to A3, assigning a stable outlook. This marks the first time since 2011 that the island nation has returned to the “A” investment grade, a milestone that highlights its steady economic recovery after the financial crisis and international bailouts.
The Ministry of Finance in Cyprus hailed the upgrade as recognition of the country’s disciplined fiscal management and significant debt reduction. Moody’s noted that Cyprus has achieved one of the world’s most substantial decreases in public debt ratios since 2020. The agency predicts this trend will continue, enhancing the nation’s long-term fiscal stability.
Cyprus’ economic resilience is supported by strong growth in high-value service sectors, increased foreign direct investment, corporate relocations, and reforms under the National Recovery and Resilience Plan (NRRP). Moody’s also highlighted the stabilization of the banking sector, attributing reduced risks to sustained deleveraging and improved financial health within Cypriot banks.
President Nicos Christodoulides expressed pride in the development, calling it a pivotal moment for the nation. “This upgrade is a testament to the strength of our economic policies and the collective efforts of the Cypriot people. It boosts our reputation as a prime destination for investment and job creation,” he said.
The President added that the achievement provides a foundation for accelerating growth and ensuring that government initiatives continue to improve the quality of life for all citizens.