We saw last month both Standard & Poor and Fitch Ratings upgrading Cyprus credit rating.
Now, Moody’s Investors Service has also confirmed that the country is making significant progress. Moody’s has upgraded Cyprus’s government bonds rating from Caa3 to B3. Moreover, the agency has upgraded the outlook of the bonds from ‘positive’ to stable.
The rating agency stated that the upgrade reflected the consolidation of the government’s fiscal position as illustrated by an expected return to a primary budget surplus from 2014 and the expectation that public debt relative to GDP will level off in 2015. Moreover, the upgrade was a result of the stabilisation of Cyprus’s financial sector through the recapitalisation of troubled banks.