DBRS Morningstar changes Cyprus’ outlook to ‘positive’

DBRS Morningstar changes Cyprus’ outlook to ‘positive’

DBRS Morningstar confirmed on Friday the Republic of Cyprus’ Issuer Ratings at BBB (low) and changed the trend to “positive” from “stable.”

In a statement, the Canada-based rating agency said the positive trend reflected DBRS Morningstar’s expectation that Cyprus’ public debt ratio will most likely return to its pre-pandemic downward path starting this year underpinned by a solid economic growth, fiscal repair, and a reduction in the cash buffer.

Covid-19 continues to pose challenges and bring uncertainties to the economic and fiscal outlook, however DBRS Morningstar takes a favorable view of Cyprus’ relative economic performance and improving health situation.

Despite the importance of tourism-related activities, the Cypriot economy has proven more resilient than anticipated, setting the conditions for strong growth in the medium term, it added.


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