Filenews 15 February 2026 - by Charalambos Zakos
Economists estimate that the first tests for any new President and new government are the assessments of international agencies on the course of the economy and its prospects.
So far, as of March 2023, more than 27 ratings of international agencies validate the improvement in Cyprus' credit profile.
The latest upgrade from Scope Ratings comes to confirm exactly this trend, which shows that the Cypriot economy, although it still has to avoid reefs, is moving at satisfactory levels for the rating agencies and shows signs not only of recovery from the problems of the past, but also of resilience even to external factors.
Essentially, international agencies evaluate Cyprus' foreign policy on the economy, whether it can be said in this way to make it more understandable to the average citizen, but also domestic decisions and moves that have to do with the country's economic profile.
Public debt, fiscal surpluses, growth, the resilience of banks and the stability of the policies followed in the economy and not only are those that are usually prioritized by international agencies and evaluated.
It is worth noting that according to the data, 2024 was the year with the largest concentration of upgrades of the Cypriot economy.
From "A-" to A"
As mentioned in a previous report, the rating agency Scope Ratings upgraded the long-term credit rating of the Republic of Cyprus to "A" from "A-" at the beginning of February 2026, citing the significant reduction of public debt, fiscal surpluses and the improved resilience of the banking sector.
Basically, this upgrade, in simple words, shows that Cyprus' investment profile is strengthening, that the image of stability and resilience of the economy is improving and at the same time the credit risk for the country is reduced.
According to the agency and its rationale, its assessment is based on strong fiscal performance and resilient growth, which have led to a rapid reduction in public debt. Debt is estimated to have fallen to 55.4% of GDP in 2025, from 113.6% in 2020, with a forecast to fall below 40% by 2030. At the same time, the banking sector strengthened, as non-performing loans fell to 4.2% in October 2025.
The fiscal outlook remains positive, with a surplus of 4.1% of GDP in 2024 and around 3.3% in 2025, despite extraordinary expenditure.
Surpluses of more than 3% are projected in 2026-2027 and above 1% by 2030. Growth stood at 3.5% in 2025, supported by consumption and investment, while unemployment fell to 4.3% and inflation remained low.
However, at the same time, risks from the small and open nature of the economy, external deficits and possible increased spending on climate, defense and aging are highlighted. The stable outlook reflects the balance between strong performance and structural challenges.
At least one upgrade from all Houses
Understandably, Scope is not the only agency that proceeds with evaluations of the Cypriot economy. According to the data collected by "F" and concerning the four largest international agencies, from March 2023 until today, 27 evaluations have been published.
These ratings were made by Moody's, DBRS Morningstar, Fitch Ratings, and S&P. According to the analysis of the data, all agencies recorded at least one tier upgrade during this period, with the three largest (Fitch, Moody's and S&P) now placing Cyprus in category A, while it is worth noting that 2024 was the year with the largest concentration of upgrades.
What each agency recorded
DBRS Morningstar
- March 31, 2023: Maintaining Credit Rating at BBB, With a Solid Outlook
- September 29, 2023: Credit rating upgraded to BBB (high), with stable outlook, from BBB
- March 22, 2024: Rating confirmed at BBB (high), with stable outlook
- September 20, 2024: Maintain rating at BBB (high) and revise outlook to positive, from stable
- March 21, 2025: Upgrade to Category A, to A (low), with positive prospects
- September 19, 2025: New upgrade to A, with stable outlook, from A (low)
In conclusion, for the agency, the Cypriot economy went from BBB to A within two and a half years, with intermediate positive revisions to its outlook.
Fitch Ratings
- March 10, 2023: Maintaining credit rating at BBB, with a stable outlook
- June 16, 2023: Confirmation of the BBB rating, with a stable outlook
- December 8, 2023: Maintain the rating on the BBB and revise the outlook to positive, from stable
- June 7, 2024: Upgrade to BBB+, with a positive outlook
- December 6, 2024: Upgrade to A-, with stable prospects
- 23 May 2025: Confirmation of the assessment in A-, with a stable outlook
- November 21, 2025: Maintain the rating at A- and revise the outlook to positive, from stable
From Fitch there was a double upgrade (BBB > BBB+ > A-) and maintenance in investment grade A-, with a positive outlook at the end of the period.
Moody’s Investors Service
- 3 April 2023: Credit rating maintained at Ba1, with a positive outlook
- September 29, 2023: Upgrade to Baa2, with a solid outlook, and signalling a return to investment grade
- May 24, 2024: Maintain the rating in Baa2 and revise the outlook to positive, from stable
- November 22, 2024: Upgrade to A3, with a stable outlook
- 23 May 2025: Confirmation of the assessment in A3, with a stable outlook
- 21 November 2025: Confirmation of the assessment in A3, with a stable outlook
Moody's moved from non-investment grade (Ba1) to A3 in less than two years, stabilizing at A.
S&P Global Ratings
- September 1, 2023: Maintaining the credit rating on the BBB, with a positive outlook
- June 14, 2024: Upgrade to BBB+, with a positive outlook
- December 13, 2024: Upgrade to A-, with a stable outlook
- November 14, 2025: Maintain the rating at A- and revise the outlook to positive, from stable
The agency proceeded with a double upgrade within 15 months, moving Cyprus from BBB to A-class. At the end of 2025, Cyprus is kept in A- with positive prospects.
