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S&P revises Cyprus econ prospects from stable to positive

Standard & Poor’s rating agency confirmed on Friday evening the credit rating of Cyprus at BB+/B, while revising the prospects of the Cypriot economy from stable to positive.

This means, according to S&P, that it is likely to upgrade the creditworthiness of Cyprus over the next 12 months if fiscal consolidation continues smoothly and the economy continues to recover to pre-crisis levels.

The credit rating agency also predicts that Cyprus’ GDP growth will average 3% over the period 2017-2020

Earlier this year, on March 17, S&P upgraded Cyprus’ long-term foreign and domestic currency rating to BB+ from BB with a stable outlook, and confirmed its short-term foreign and domestic currency valuation at B.

S&P was the first credit rating agency to downgrade Cyprus’ bonds to junk in January 2012, followed by Moody’s and Fitch.

According the Standard & Poor’s rating scale, Cypriot long-term bonds are one notch below the investment-grade category.

After completing an economic adjustment programme funded by the EU and the IMF, Cyprus recorded two consecutive years of economic growth, with the finance ministry projecting GDP growth by 2020.

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