Cyprus Times

S&P Confirms Cyprus's 'A-' Rating with Positive Outlook

Published March 21, 2026, 08:09
S&P Confirms Cyprus's 'A-' Rating with Positive Outlook

S&P Global Ratings has confirmed Cyprus's long-term rating at 'A-' and the short-term at 'A-2', while maintaining a 'positive outlook' for the Cypriot economy. This confirmation is a vote of confidence in the economy, especially during a period of geopolitical instability. S&P states that the positive outlook reflects the expectation of better external performance for Cyprus over the next two years, despite the uncertainties caused by the conflict in the Middle East. It estimates that the economy will maintain strong growth, with an average GDP increase of 2.8% between 2026 and 2029. The agency expects the fiscal surplus to rise to over 3% of GDP by 2029, reducing the government's debt to just over 30% of GDP. At the same time, it recognizes that inflation remains low, but expects an increase due to the potential rise in energy prices. The President of the Republic, Nikos Christodoulides, described the confirmation of the rating as a strong vote of confidence in the country's economy, emphasizing that the resilience of the Cypriot economy and commitment to fiscal responsibility are recognized.