Credit rating agency Fitch has upgraded Cyprus’ long-term credit rating by one notch to ‘BBB’ with a stable outlook citing.

Amongst others, the areas where the rating was evaluated was based on:  

  • The ongoing improvement of the country’s fiscal position and the continued consolidation of the banking sector are two sectors crucial to achieving further upgrades,
  • The NPLs have fallen further, as Cyprus’ two systemic banks completed one and are close to completing a further large sale of NPLs,
  • It is expected that real GDP growth for 2023 and 2024 to rise as economic activity expands from the middle of this year,
  • Strong growth in other sectors of the economy, such as information and communications technology services, points to greater diversification of economic activity.

George Themistocleous, CEO and Managing Partner of RSM Cyprus, said

“Based on these improvements I believe that these results will enhance the Cyprus economy. Despite the global inflation, Cyprus has displayed strong resilience in the recent years, with many sectors driving the Cyprus economy into a period of growth and expansion with industries such as tourism, financial services, and energy.  I also believe that based on the Political and Economic aspect of Cyprus, the economy will continue to improve.  Foreign investors, entrepreneurs and businesses will feel more confident and empowered in investing further to the Cyprus financial system”.