Filenews 18 March 2025
Fitch Ratings upgraded Bank of Cyprus to investment grade, giving it a BBB- from BB+ rating, with a positive outlook. The bank now has investment grade status from all three major rating agencies (Moody's, S&P, Fitch), which marks an important milestone for both the banking group and the Cypriot economy.
Factors that led to the upgrade
Fitch justified its decision based on:
✅ Asset quality improvement – The non-performing loans (NPE) ratio decreased to 1.9% as of 31 December 2024.
✅ Strong capital position – CET1 ratio stood at 19.2% at the end of 2024.
✅ A leading position in the Cypriot market, with a dominant role in the banking industry.
✅ Healthy profitability, which, according to Fitch, is expected to remain satisfactory despite the reduction in interest rates.
In addition, Fitch upgraded Bank of Cyprus' sustainability assessment to bbb- from bb+, further strengthening confidence in its prospects.
Positive outlook and economic growth
The positive outlook of the rating is due to the continuous improvement of the Cypriot banking system, with Cypriot banks benefiting from continued economic growth and a strengthening investment climate
