Standard & Poor's upgrades Cyprus credit rating to A

International credit rating agency Standard & Poor’s (S&P) upgraded the Republic of Cyprus’s long-term sovereign credit rating from “A-” to “A” on September 18, 2026, while maintaining a positive outlook. This marks the country’s return to the “A” category for the first time since 2011, reflecting confidence in the nation's fiscal resilience, declining public debt, and steady economic growth despite global geopolitical instability.

The agency projects that Cyprus’s economic growth will moderate to 2.7% due to regional tensions in the Middle East, though it is expected to continue outperforming most European peers. Fiscal indicators remain strong, with public debt forecasted to drop to just above 30% of GDP by 2029, alongside persistent fiscal surpluses. S&P cited prudent economic governance and a robust labor market as key drivers behind the upgrade.

President Nikos Christodoulides and Finance Minister Makis Keravnos welcomed the news as a validation of the government's economic policy and a boost for international investment. While the upgrade is expected to lower government borrowing costs, analysts and political figures, including opposition members, have cautioned that this macroeconomic success must be translated into tangible social benefits, specifically addressing rising costs of living, housing, and administrative bureaucracy.