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DBRS Morningstar Changes Trend On Cyprus To Positive, Confirms At BBB low
October 25, 2021
DBRS Morningstar confirmed Cyprus’s Long-Term Foreign and Local Currency – Issuer Ratings at BBB (low) and changed the trend to Positive from Stable. At the same time, DBRS Morningstar confirmed Cyprus’s Short-Term Foreign and Local Currency – Issuer Ratings at R-2 (middle) and changed the trend to Positive from Stable.
The credit rating agency said that the Positive trend reflected its expectation that Cyprus’s 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”.
It said that COVID-19 continued to pose challenges and bring uncertainties to the economic and fiscal outlook; however, the agency viewed favourably "Cyprus’s relative economic performance and improving health situation".