S&P Global Ratings upgraded Cyprus’s credit rating from “A-” to “A” while maintaining a positive outlook, returning the country to A-grade status for the first time since 2010, the Finance Ministry announced.
The agency credited the upgrade to the island’s strong economic fundamentals and resilience despite global geopolitical uncertainty. Economic growth is projected to slow to 2.7% due to regional tensions, but S&P highlighted that Cyprus will continue to outpace most European peers while generating fiscal surpluses. The agency expects public debt to fall to just above 30% of GDP by 2029, supported by sound economic governance, strong private investment, and a robust labor market.
Current account deficits are expected to hover near 7% between 2027 and 2029, though S&P views this level as manageable. The agency noted that further upgrades could follow within 12 months if economic forecasts hold, while warning that any significant expansion of the Middle East conflict poses a key risk to the outlook.
Finance Minister Makis Keravnos welcomed the decision, stating that the upgrade reinforces Cyprus’s credibility in international markets during a volatile period. He emphasized that government policy would remain focused on fiscal discipline, growth, and reducing public debt. The minister concluded that the government’s priority is ensuring economic benefits reach households and businesses, while supporting vulnerable citizens through targeted social policy.
