Moody’s Investors Service has raised Cyprus to ‘investment grade’ after 11 years of lingering in junk mode and President Nikos Christodoulides on Saturday warmly welcomed the positive development.
Specifically, Moody’s upgraded Cyprus’ rating by two notches, to Baa2, and changed its outlook on the country to stable from positive.
Moody’s noted that the ratings upgrade reflects “broad-based, sustained improvements” in Cyprus’s credit profile.
And this resulted from past and ongoing economic, fiscal, and banking reforms.
At the same time, Moody’s expects Cyprus’s economy to grow by 2.3% this year and 2.8% next year, then to have average growth of 3.2% over 2025 to 2027.
Moody’s also said its outlook balances the country’s positive credit trends against remaining challenges.
The agency also raised Cyprus’s local and foreign currency country ceilings to Aa2 from A1.