Cyprus has retained its investment-grade credit rating of “A” with a stable outlook from DBRS Morningstar, in a move welcomed by Finance Minister Makis Keravnos as a strong vote of confidence in the country’s economic credibility.
In a statement, the minister described it as particularly encouraging that international rating agencies continue to express “full confidence” in the Cypriot economy during a period of global economic uncertainty.
Persevering through conflict
He noted that the global outlook has been affected by the intensification of hostilities in the Middle East, which has also increased uncertainty about Cyprus’ short-term economic prospects given its geographical proximity to the region.
Despite these risks, the rating agency’s assessment took into account recent developments and highlighted the strong growth momentum Cyprus has recorded in recent years, Keravnos said.
According to the minister, the agency’s positive conclusions are also based on the country’s substantial fiscal buffers, which he said would allow the Republic of Cyprus to mitigate potential negative effects from the conflict in the wider Middle East.
Promoting economic initiatives
This, he added, reflects international confidence in the prudent and forward-looking economic policy pursued by the government.
Keravnos said the government would continue to support the economy in a responsible and flexible manner in light of the challenges arising from developments in the global economic and political environment.
He stressed that policies would aim to sustain growth and employment while maintaining sound public finances, promoting economic initiatives that maximise opportunities for continued expansion while also reducing public debt.
In a separate statement, the Finance Ministry said the confirmation of the country’s rating amid serious destabilising developments in the region highlights the resilience of the economy and the credibility Cyprus has built in managing previous crises.