Government Predicts Upgrade to Investment Grade in September

July 31, 2017

The Cyprus government is expecting that in September it could shake off its “junk” status and reach investment grade.

Cyprus was upgraded by credit ratings house Moody’s, while previously there was an upgrade from DBRS.

There is optimism among government officials that the next Standard & Poor’s rating, scheduled for September 15, will take Cyprus out of the “junk” category, and up into investment  grade for the first time in five years.

Currently, Cyprus is just one notch below investment grade according to Standard & Poor’s. Moody’s, DBRS and Fitch on the other hand rate Cyprus as three notches below.

The next few months are expected to be key for the Cyprus economy, as new credit ratings come in which could alter its junk status.

After September 15, when Standard & Poor’s publishes its credit rating for Cyprus, Fitch will publish its own rating on October 20. On November 17, Moody’s will publish its next credit rating, while DBRS will announce its new rating on December 1.

An upgrade into investment status for the Cyprus economy will allow the country to enter the ECB’s Quantitative Easing programme.