Last Update: 11:42
MoodyÎ„s Investors Service ("MoodyÎ„s") has today upgraded the long-term issuer rating of Cyprus, Government of as well as all senior unsecured bond and programme ratings to Ba3 and (P)Ba3 from B1 and (P)B1, respectively.
The outlook has been maintained at positive.The key drivers for the rating action are:
1. Improvements in economic resilience that have occurred over the past two years and that seem likely to continue in the medium term.
2. The consistent fiscal outperformance and continuing favourable fiscal outlook for Cyprus.
Moody’s says it expects growth to be sustained by private consumption and increased revenue from record tourism that accounts for around 13.2 per cent of Cyprus’ economy.
The agency says Cyprus has also continued to outperform fiscal targets, helping to push down a high debt burden that in 2016 was 108 per cent of gross domestic product.
Cyprus nearly went bankrupt in 2013 when a banking crisis coupled with overspending forced it to seek a multibillion-euro rescue deal from its eurozone partners and the International Monetary Fund.