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Fitch Affirms Cyprus’ Long-Term Credit Rating At BBB- Maintaining Stable Outlook
September 27, 2021
International rating agency Fitch has affirmed Cyprus long-term credit rating at BBB- maintain a stable outlook, noting that Cyprus` institutional strength and its record of robust economic growth and sound fiscal policy prior to the Covid-19 pandemic are balanced by balance-sheet weaknesses, in particular high public debt, and a weak banking sector.
The agency forecasts a real GDP growth of 4.8% in 2021, partly due to strong base effects, and a gradual normalisation of growth rates in 2022 and 2023 of 3.7% and 2.9%, respectively, following a downturn of 5.1% in 2020.