Cyprus’ DBRS outlook turns into ‘Positive’

Morningstar DBRS announced past Friday it has affirmed the recognition standing of the Republic of Cyprus astatine BBB (high) and raised its outlook from “Stable” to “Positive.”

The Canadian-based standing bureau explained that the standing reflects the presumption that “public indebtedness metrics are apt to proceed to improve.”

“The wide authorities debt-to-GDP ratio decreased from 99.3% successful 2021 to 77.4% successful 2023. Looking ahead, the European Commission forecasts wide authorities indebtedness to diminution further to 65.4% of GDP successful 2025 connected the backmost of beardown maturation and fiscal surpluses. Growth is apt to proceed to payment from robust backstage consumption, rising work exports and beardown operation investment,” it said.

It added that its standing is “supported by a unchangeable governmental environment, the government’s dependable fiscal and economical policies successful caller years and a mean involvement burden. Furthermore, though governance indicators person weakened, Morningstar DBRS continues to presumption EU rank arsenic an important anchor for organization quality. On the different hand, the recognition ratings of Cyprus stay constrained by the tiny size of its service-driven economy, rendering it susceptible to outer shocks.”