Fitch revises Cyprus outlook to stable

Fitch revises Cyprus outlook to stable

Fitch Ratings announced on Friday that it has affirmed Cyprus’ credit rating at "BBB" but has revised its outlook to stable.

Fitch said that the revision of Cyprus’ outlook reflects the impact of the global Covid-19 pandemic on the country’s economy and on its sovereign fiscal position.

It added that recession and the economic policy response to Covid-19 will result in a significant deterioration of Cyprus’ budget balance this year, adding that baseline forecasts are tilting firmly to the downside, as the agency assumes that the pandemic will not be contained before the second half of the year.

Fitch also noted that Cyprus’ track record of significant fiscal consolidation and prudent fiscal policy is a credit strength.

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