cyprus rating — cyprus rating — The credit rating of the Republic of Cyprus has been confirmed at A- by Standard & Poor’s, with an upgraded outlook to Positive, as reported on November 14, 2025. This decision highlights the resilience of the Cypriot economy and its strong fiscal and macroeconomic performance.
Standard & Poor’s (S&P) attributes this rating to the ongoing reduction in public debt and the anticipated steady growth momentum. The agency projects that Cyprus will see mid-term GDP growth bolstered by service exports, domestic consumption, and both public and private investments facilitated by the Recovery and Resilience Facility.
In their analysis, S&P notes that public debt is on a downward trend, expected to decrease further in the coming years. The agency anticipates that continuous fiscal surpluses will lead to net public debt dropping to 35% of GDP by 2028, reflecting a stable fiscal environment. Inflated prices are gradually easing, and the banking sector is showing improvement, particularly marked by a reduction in non-performing loans.
Cyprus rating: Positive Outlook Amid Global Challenges
The revision of the outlook to Positive indicates the enhancing external debt position of Cyprus due to effective deleveraging and robust service exports. While S&P remains optimistic, they advise caution regarding the high external deficits and potential geopolitical risks that could affect the nation’s credit rating.
According to S&P, the Cypriot economy is projected to grow at approximately 3% from 2025 to 2028, with strong investments under the Recovery and Resilience Facility and increased private consumption. The government is committed to fostering economic activity responsibly while navigating the complexities posed by global geopolitical developments.
Government Officials React to S&P’s Assessment
Finance Minister Makis Keravnos expressed his satisfaction with the S&P assessment, noting that it confirms the A- investment grade while also elevating the outlook to Positive. He highlighted the report’s emphasis on the resilience of the Cypriot economy and the effective management of public debt. Keravnos sees this as an affirmation of the government’s policies and their commitment to maintaining fiscal discipline.
The Minister also noted that the positive outlook could lead to future upgrades as net public debt continues to fall, underscoring the creditworthiness of Cyprus in the financial markets. He emphasised that these ratings reflect the economy’s vibrancy despite heightened geopolitical risks.
President Highlights Economic Progress
In a statement, President Nikos Christodoulides remarked that Cyprus is entering a “trajectory of enhanced momentum” following the credit rating confirmation and outlook upgrade by S&P. He credited the government’s consistent and responsible fiscal choices as well as ongoing reforms designed to position Cyprus as a reliable hub for quality investments.
Christodoulides pointed to tangible benefits for citizens, such as reduced borrowing costs, enhanced entrepreneurship, and the creation of well-paid jobs. He reiterated the importance of strategic targeting towards a competitive, technologically advanced economic model that prioritises outward orientation to sustain growth.
