Moody’s Investors Service has upgraded Cyprus’ credit rating by two levels, from Baa2 to A3, with a stable outlook. This marks the country’s first return to the coveted “A” investment grade since 2011, underscoring its significant economic turnaround following years of financial turmoil and international bailouts.
The Cypriot Ministry of Finance welcomed the upgrade as a reflection of improved fiscal policies and debt management. Moody’s acknowledged Cyprus’ remarkable progress in reducing its public debt ratio since 2020, ranking it among the top nations in debt reduction globally. The agency forecasts further debt declines in the medium term, strengthening the country’s financial stability.
Economic growth in Cyprus is being driven by high-performing service sectors, corporate relocations, foreign direct investment, and reforms linked to the National Recovery and Resilience Plan (NRRP). Moody’s also cited the strengthening of Cyprus’ banking sector, highlighting reduced risks thanks to deleveraging and improved credit profiles.
President Nicos Christodoulides called the upgrade a significant achievement. “This milestone reflects global confidence in Cyprus’ economic policies and our collective efforts. It opens new opportunities for quality investments, job creation, and competitiveness,” he stated.
Christodoulides further noted that the government would leverage this success to bolster economic growth, attract more foreign investment, and implement social measures aimed at improving citizens’ daily lives.