13 Years Later – Moody’s Upgraded Cyprus to Investment Category 'A'

Cyprus has returned to the prestigious “A” investment category, with Moody’s upgrading the country's credit rating from Baa2 to A3 and assigning a stable outlook. This significant milestone comes 13 years after the country faced a financial crisis and marks a strong endorsement of Cyprus’ fiscal policies and economic recovery.

The upgrade reflects Cyprus’ robust fiscal improvements, including a dramatic reduction in public debt ratios since 2020, placing the country among the global leaders in debt reduction.

Moody’s expects public debt levels to remain stable and further improve over the medium term, reinforcing Cyprus’ economic resilience. The Cypriot economy has shown consistent growth, fuelled by expansions in high-productivity service sectors, foreign direct investment (FDI), corporate relocations, and reforms linked to the National Recovery and Resilience Plan (NRRP). The banking sector has also strengthened significantly, with risks now deemed contained due to ongoing deleveraging and improved credit profiles.

The local authorities described the upgrade as a vote of confidence in Cyprus’ policies, highlighting its exceptional importance for attracting quality foreign investments, creating new job opportunities, and reinforcing the country’s position as a reliable investment destination.

This achievement not only bolsters Cyprus' competitiveness but also signals dynamic economic growth, enabling further advancements in social measures aimed at improving the quality of life for all Cypriot citizens.