Standard and Poor's upgrades Cyprus credit rating to A

On September 19, 2026, the international rating agency S&P Global Ratings upgraded the credit rating of the Republic of Cyprus to 'A/A-1' from 'A-/A-2', maintaining a positive outlook. This move marks the first time since 2010 that the country has returned to the 'A' grade, signaling confidence in the resilience of the Cypriot economy despite ongoing geopolitical tensions in the Middle East and global inflationary pressures.

The agency's decision is primarily attributed to a sharp reduction in public debt and consistent fiscal surpluses. S&P projects that net public debt will decline to approximately 31% of GDP by 2029, a significant improvement from 97% in 2020. The economy is expected to grow by 2.7% in 2026, supported by a strong labor market and high service exports. While potential energy cost disruptions are expected to continue through 2027, the agency considers the immediate impact of regional conflicts to be limited.

Cypriot officials, including Finance Minister Makis Keravnos and the President of the Republic, expressed satisfaction with the upgrade, describing it as a vote of confidence in the country's prudent fiscal policies. S&P has left the door open for further upgrades within the next two years, provided the economic stability continues.