Capital Intelligence, the rating company based in Limassol, released figures showing that long-term foreign currency sovereign in Cyprus rating has been upgraded from B to B+ and has maintained a constant rate of the short-term foreign currency at B.
Experts state that the ratings show longevity for the country’s economic outlook, as a result of the recent growth and financial performance. Cyprus returned to growth last year after 3 consecutive years of recession, predominantly because of the government’s commitment to meet the terms of the 2013 bailout, which simultaneously helped improve the islands risk profile.
Capital Intelligence stated: “While there have been significant delays in main areas of development in Cyprus, for example issues with privatisation, everything is still on track to exit its Troika programme this month as planned with the EC, IMF and EU. The economy has sustained growth and over performed on projected targets, with GDP set to increase by 1.7% in 2016. These positive figures show the resilience of all service sectors on the island and an increase in tourism.
After the government took control of public spending in 2013, both national and government debt will likely drop to economic output of 95% in 2017 after highs of 109% were experienced in 2015, a raise of 2% from the year before, according to statistics from Capital Intelligence.