Moody’s maintains Cyprus’s credit rating at A3 with a stable outlook

On May 29, 2026, the international rating agency Moody’s reaffirmed the credit rating of the Republic of Cyprus at the A3 level with a stable outlook. This decision reflects the country’s economic resilience, declining public debt, which is now below the 60% of GDP Maastricht threshold, and a strong banking sector. Minister of Finance Makis Keravnos noted that the rating confirms the effectiveness of the government’s fiscal policy and structural reforms. However, the report highlights potential risks, including geopolitical instability in the Middle East, which may negatively impact tourism and inflation. Additional challenges mentioned by the agency include fiscal pressures from healthcare costs, public sector wages, and aging infrastructure. The government stated it will maintain a prudent and proactive fiscal approach to manage these risks and ensure macro-economic stability. The rating agency’s assessment was finalized following a periodic review committee meeting held on May 21, 2026.