Economists view international credit rating assessments as the first test for any new president and government, measuring economic progress and prospects.
Since March 2023, more than 27 assessments from international agencies have confirmed improvement in Cyprus’s credit profile, according to data compiled by Phileleftheros.
The latest upgrade from Scope Ratings in early February 2026 confirms this trend, showing the Cypriot economy moving at satisfactory levels for rating agencies and displaying signs not only of recovery from past problems but also resilience to external factors, despite challenges ahead.
International agencies essentially evaluate Cyprus’s external economic policy and internal decisions affecting the country’s economic profile, rating factors including public debt, fiscal surpluses, growth, banking resilience and stability of economic policies.
Notably, 2024 marked the year with the greatest concentration of upgrades for the Cypriot economy, according to the data.
Scope Ratings upgraded Cyprus’s long-term credit rating to “A” from “A-” in early February 2026, citing significant reduction in public debt, fiscal surpluses and improved banking sector resilience.
The upgrade strengthens Cyprus’s investment profile, improves the image of economic stability and resilience, and reduces credit risk for the country.
According to the agency’s rationale, the assessment rests on strong fiscal performance and resilient growth that led to rapid reduction of public debt. Debt is estimated to have fallen to 55.4% of GDP in 2025 from 113.6% in 2020, with projections to fall below 40% by 2030. The banking sector strengthened as non-performing loans fell to 4.2% in October 2025.
Fiscal prospects remain positive, with a surplus of 4.1% of GDP in 2024 and approximately 3.3% in 2025 despite extraordinary expenses.
Surpluses above 3% are forecast for 2026-2027 and above 1% until 2030. Growth reached 3.5% in 2025, supported by consumption and investment, whilst unemployment fell to 4.3% and inflation remained low.
However, risks are noted from the small and open character of the economy, external deficits and potentially increased spending on climate, defence and ageing. The stable outlook reflects the balance between strong performance and structural challenges.
Data covering the four largest international agencies shows 27 assessments published from March 2023 to present by Moody’s, DBRS Morningstar, Fitch Ratings and S&P.
All agencies recorded at least one grade upgrade during this period, with the three largest — Fitch, Moody’s and S&P — now placing Cyprus in category A.
DBRS Morningstar moved Cyprus from BBB to A over two and a half years. The agency maintained the rating at BBB with stable outlook on 31 March 2023, upgraded to BBB (high) with stable outlook on 29 September 2023, confirmed BBB (high) with stable outlook on 22 March 2024, maintained BBB (high) and revised outlook to positive from stable on 20 September 2024, upgraded to A (low) with positive outlook on 21 March 2025, and delivered a new upgrade to A with stable outlook from A (low) on 19 September 2025.
Fitch Ratings delivered a double upgrade and maintains Cyprus at investment grade A- with positive outlook. The agency maintained the rating at BBB with stable outlook on 10 March 2023, confirmed BBB with stable outlook on 16 June 2023, maintained BBB and revised outlook to positive from stable on 8 December 2023, upgraded to BBB+ with positive outlook on 7 June 2024, upgraded to A- with stable outlook on 6 December 2024, confirmed A- with stable outlook on 23 May 2025, and maintained A- whilst revising outlook to positive from stable on 21 November 2025.
Moody’s Investors Service moved Cyprus from non-investment grade (Ba1) to A3 in less than two years, stabilising at A. The agency maintained the rating at Ba1 with positive outlook on 3 April 2023, upgraded to Baa2 with stable outlook on 29 September 2023 marking the return to investment grade, maintained Baa2 and revised outlook to positive from stable on 24 May 2024, upgraded to A3 with stable outlook on 22 November 2024, and confirmed A3 with stable outlook on both 23 May 2025 and 21 November 2025.
S&P Global Ratings delivered a double upgrade within 15 months, moving Cyprus from BBB category to A-. The agency maintained the rating at BBB with positive outlook on 1 September 2023, upgraded to BBB+ with positive outlook on 14 June 2024, upgraded to A- with stable outlook on 13 December 2024, and maintained A- whilst revising outlook to positive from stable on 14 November 2025. At the end of 2025, Cyprus remains at A- with positive outlook.
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