The upgrade of Cyprus by S&P Global Ratings reflects the progress Cyprus has made in recent years to address fiscal imbalances, amid resilient growth, the Ministry of Finance  has stressed.

Noting in a post on 'X' that on June 14, 2024, S&P Global Ratings raised its long-term foreign and local currency sovereign credit ratings on the Republic of Cyprus to 'BBB+' from 'BBB' and that the outlook is positive, the Ministry said that the upgrade reflects the progress Cyprus has made in recent years to address fiscal imbalances, amid resilient growth.

Moreover, the Ministry said that "they project gross general government debt will fall below the Maastricht treaty threshold of 60% by 2027. Their improved assessment of Cyprus' creditworthiness also reflects the strengthening financial position of Cypriot banks," it added.

"The positive outlook reflects upward pressure on the sovereign ratings, as fiscal and economic outcomes outperform peers. In their view, the strengthening financial position of Cyprus' banking system should lead to greater convergence of domestic financing conditions to that of the broader euro area, with potential positive ratings implications" the Finance Ministry said.