Moody's Upgrade Cyprus' Economy to Ba3
Moody`s rating agency has upgraded government bond ratings of Cyprus by one notch, to Ba3 from B1. Moody's maintained a positive outlook and said the short-term ratings have been affirmed, at Not Prime (NP) and (P)NP.
Cyprus Government Spokesman Nicos Christodoulides said that the upgrade of Cyprus by Moody`s, "is another step in restoring confidence in our economy and another confirmation that we are now on a path that creates a positive outlook."
The fact that Moody's maintained the prospects of the Cypriot economy on a positive outlook means that it will probably proceed with a new credit rating upgrade in the next assessment of Cyprus in November.
Cyprus is now three upgrades away from the investment grade of Moody's.
According to the rating agency, the key drivers for the rating action are improvements in economic resilience that have occurred over the past two years and that seem likely to continue in the medium term, as well as the consistent fiscal outperformance and continuing favorable fiscal outlook for Cyprus.