Morningstar DBRS raises Cyprus credit outlook to positive, maintains A rating
Morningstar DBRS affirmed Cyprus’ long-term credit rating at A and revised its outlook to positive from stable.
Nicosia, Cyprus. Finance Minister Makis Keravnos welcomed Morningstar DBRS’ decision to revise Cyprus’ credit outlook from stable to positive while affirming the Republic’s long-term rating at A.
The agency said the positive trend reflected its expectation that Cyprus would maintain a strong fiscal position and continue reducing public debt.
Government response
In a written statement on Saturday, Keravnos described the assessment as further confirmation of the Cypriot economy’s resilience during a period of global instability, challenges and risks.
He said the agency’s decision confirmed the government’s prudent and proactive economic policy, which he said was strengthening the Republic’s economic position and contributing to the steady reduction of public debt.
Keravnos also cited Cyprus’ fiscal buffers, saying they enabled the government to respond in the short term to potential risks stemming from international geopolitical developments.
He said the government would continue supporting the economy responsibly and flexibly, with regard to growth, employment and public finances, while pursuing further economic growth and debt reduction.
Morningstar DBRS assessment
Morningstar DBRS issued its assessment late on Friday, affirming Cyprus’ long-term credit rating at A and revising its outlook to positive from stable.
The agency also affirmed the Republic’s short-term ratings at R-1 (low) and revised their outlook to positive.
The change indicates a higher possibility of a future rating upgrade if improvements in Cyprus’ public finances and economic resilience continue.
Morningstar DBRS said it expected favourable growth prospects and sizeable structural fiscal surpluses to reduce public debt from 49.9 per cent of GDP in 2026 to below 40 per cent by 2029.
The finance ministry said the assessment was significant confirmation of the Cypriot economy’s resilience and positive prospects amid increased international uncertainty and geopolitical challenges.
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