Fitch Ratings upgrades Cyprus to 'A' with stable outlook

On November 6, 2026, the rating agency Fitch Ratings upgraded the long-term foreign currency issuer default rating of the Republic of Cyprus from 'A-' to 'A', while maintaining a stable outlook. Additionally, the short-term rating was raised from 'F1' to 'F1+'. This decision reflects the country's rapid reduction of public debt, consecutive fiscal surpluses, and strong economic growth across multiple sectors. Fitch projects that Cyprus will maintain the highest budget surplus in the eurozone, with public debt expected to fall below 50% of GDP in 2026 and reach 36.6% by 2028.

The upgrade was welcomed by government officials, including Finance Minister Makis Keravnos and President Nikos Christodoulides. They characterized the decision as a vote of confidence in the government's fiscal policies and economic resilience, noting that it confirms the positive trajectory of the economy despite a challenging global environment. The administration emphasized that this strengthening of the economy provides a better foundation for future investments in healthcare, education, and social housing, while ensuring support for households and businesses.