International credit rating agencies, Standard and Poor’s (“S&P”) and Fitch, have upgraded the Cyprus economy citing progress in the implementation of the restructuring program set out by the European Commission, International Monetary Fund and European Central Bank, (“Troika”) and for meeting financial targets. This is the first upgrade the Cyprus economy has received in three years.
S&P raised their long-term sovereign credit ratings on Cyprus to 'B' from 'B-' and affirmed their short-term sovereign credit ratings at 'B'.
Fitch revised the outlook on Cyprus's long-term foreign currency Issuer Default Rating (IDR) from Negative to Stable and affirmed the IDR at 'B-'. The agency also upgraded the long-term local currency IDR to 'B-'.
The President of Cyprus, Nicos Anastasiades, issued a statement following the upgrades: “ These upgrades are not only the result of painful sacrifices on behalf of the people, but also the coherent and decisive policy of the government and political parties over the past eight months. Cyprus will continue with the same prudent and disciplined policy to manage what lays ahead.”