Standard and Poor's upgrades Cyprus credit rating to A/A-1

On September 18, 2026, the international rating agency Standard and Poor's (S&P) upgraded the long-term and short-term credit ratings of the Republic of Cyprus to "A/A-1" from the previous "A-/A-2," assigning a positive outlook to the economy.

The agency attributed the upgrade to the government's consistent reduction of public debt and strong fiscal surpluses fueled by a resilient economy and a robust labor market. S&P projects that net public debt will decline to 31% of GDP by 2029, a significant improvement from 97% of GDP recorded in 2020. The positive outlook reflects the anticipated further strengthening of external economic indicators and the continued reduction of external vulnerabilities, supported by strong service exports and direct foreign investments that help offset trade deficits.