The well known credit rating agency has upgraded Cyprus’s long term foreign currency issued default rating from ‘BBB+’ to ‘A-‘. This is a welcome development and yet another sign that sound economic policies are paying off.
The rating agency has commented on the rapid decline of public debt which has been one of the sharpest the agency has witnessed in recent years. The agency believes that this decline will continue. This is the second consecutive upgrade of the economy, the first one being the upgrade by Moody’s.
The rating agency took several factors into consideration which resulted in this upgrade such as the strong fiscal surpluses, strong growth, improving banking sector and limited fiscal risks.
