Fitch Upgrades South Cyprus Credit Rating to “A-”

According to reports in the South Cyprus press, Fitch said the decision was based on above-average per capita income levels, strong fiscal performance, and policy credibility supported by European Union and Eurozone membership.

Fileleftheros reported that Fitch’s assessment particularly highlighted fiscal discipline and economic stability.

In March, international credit rating agency S&P Global Ratings also assessed South Cyprus’s long- and short-term credit ratings at “A-/A-2”.

According to Politis, S&P said the South Cyprus economy was expected to withstand the effects of Middle East conflicts and forecast growth of 2.8% this year.

In its previous review on 14 November 2025, S&P affirmed South Cyprus’s credit rating at “A-” while upgrading its outlook from “stable” to “positive”.

The agency cited economic resilience, strong fiscal performance, and a declining public debt trend, adding that it expects debt to continue falling in the coming years.

It also noted that growth will be supported by services exports, domestic consumption, and investments under the EU Recovery and Resilience Facility. Improvements in the banking sector, including falling non-performing loans and a recovery in credit activity, were also highlighted.

S&P projected that the South Cyprus economy will grow by around 3% between 2025 and 2028, and said public debt could fall to around 35% of GDP by 2028 if fiscal discipline continues.

South Cyprus authorities described the assessments as a sign of growing international confidence in its economic policies.