Morningstar DBRS upgrades Cyprus credit rating outlook to positive

On September 4, 2026, the credit rating agency Morningstar DBRS upgraded the outlook for the Republic of Cyprus from stable to positive, while maintaining its long-term credit rating at 'A'. The agency justified this decision citing Cyprus's robust fiscal position, significant structural surpluses, and a consistent decline in public debt.

According to the report, the public debt-to-GDP ratio is projected to fall from approximately 49.9% in 2026 to under 40% by 2029. Economic growth is supported by strong private consumption, investment, and high service exports. Following a 3.8% expansion in 2025, the Central Bank of Cyprus forecasts an annual real GDP growth rate of around 3.0% for the coming years. Although the ongoing conflict in Iran has caused some impacts on tourism and imported inflation, these effects remain lower than initially anticipated.

President Nikos Christodoulides welcomed the upgrade on social media, emphasizing that the positive assessment validates the government's fiscal strategy and ongoing reform agenda. He noted that these conditions are expected to foster further investments and enhance citizens' daily lives through better employment opportunities and improved disposable income.