Morningstar DBRS upgrades Cyprus credit outlook to positive

On September 4, 2026, the international rating agency Morningstar DBRS upgraded the outlook for the Republic of Cyprus from stable to positive, while maintaining its long-term credit rating at the 'A' level. The agency also reaffirmed the country's short-term ratings at R-1 (low) with a positive trend. This decision reflects the agency's confidence in Cyprus's ongoing fiscal strength and its trajectory for reducing public debt, which is projected to fall below 40% of GDP by 2029 from approximately 49.9% in 2026.

The credit agency highlighted that the Cypriot economy is supported by robust private consumption, strong investments, and consistent growth, with real GDP expected to rise by around 3% annually. While noting potential risks from geopolitical instability, including the conflict in the Middle East, the agency acknowledged the resilience of the Cypriot banking sector and the presence of significant fiscal buffers. President Nikos Christodoulides and Finance Minister Makis Keravnos welcomed the update, citing it as an acknowledgement of the government's prudent fiscal management and successful structural reforms that have strengthened the nation's economic competitiveness.