Fitch raises Cyprus’s credit rating from A- to A — Cyprus Mail

In Cyprus, Fitch Ratings upgraded the country’s credit rating from A- to A and changed the outlook from positive to stable. President Nikos Christodoulides said the decision confirms the resilience of the Cypriot economy, Cyprus Mail reports.

Reasons for the rating upgrade

According to Fitch, the main grounds for the upgrade were Cyprus’s positive fiscal dynamics in 2026, which are expected to continue in 2027–2028, as well as the rapid reduction of public debt. The report notes that public debt decreased by 77% during 2020–2026 and is forecast to reach 36.6% of GDP by 2028.

The agency also took into account lower debt-servicing costs resulting from the reduction in debt volume. Fitch expects borrowing costs to remain manageable, which should support further growth and the resilience of the country’s economy.

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Authorities’ reaction

Christodoulides noted that the rating upgrade came several weeks after a similar decision by S&P Global Ratings. According to him, a stronger economy means more higher-paying jobs, more investment, and opportunities to finance social policy, healthcare, education, housing, and the social protection system.

Finance Minister Makis Keravnos said the government would continue its prudent fiscal policy to support society, businesses, and households and to maintain a budget reserve for unforeseen circumstances. He called Fitch’s decision a continuation of a series of rating upgrades for Cyprus, which, he said, reflect international rating agencies’ confidence in the government’s economic policy.