Capital Intelligence Ratings (CI Ratings) has announced that it has upgraded Cyprus’ Long-Term Foreign Currency Sovereign Rating to BB from BB- and affirmed its Short-Term Foreign Currency Rating at B.
At the same time, the Outlook for Cyprus’ ratings has been affirmed as ‘Positive’.
CI Ratings expects the Cypriot economy “to expand by 4.1% in real terms this year and for nominal GDP to return to its pre-crisis level.”
“We expect real GDP growth to average 3.8% in 2018-20, helping to further reduce macroeconomic vulnerabilities and putting debt metrics on a more sustainable trajectory,” it says in its ratings rationale.
According to the international credit ratings agency “downside risks to the outlook appear to be receding with the banking sector showing more solid signs of improvement following the sale of certain assets.”