Credit rating assessment dates for Cyprus confirmed by agencies

International credit rating agencies have confirmed the exact dates upon which they will announce the results of their evaluation of Cyprus’ economic standing in the coming year.

It should be noted that the long-term creditworthiness of Cyprus is on an upward trajectory, as indicated by both Standard and Poor’s and Fitch Ratings, who, in their recent evaluations in 2023, assigned a positive outlook to Cypriot credit.

In 2024, Cyprus finds its long-term credit rating positioned three grades above the minimum investment-grade threshold, specifically at BBB High and BBB+ by DBRS Morningstar and the Germany-based agency Scope Ratings.

Regarding Standard and Poor’s, Moody’s, and Fitch, the Cypriot evaluation stands at BBB, Baa2, and BBB, respectively, indicating two grades above the investment-grade threshold.

The evaluation process commences with the Canadian agency DBRS Morningstar on March 22, followed by Scope ratings on May 10.

May 24 marks the initial assessment by Moody’s, followed by Fitch on June 7, and Standard and Poor’s on June 14.

The second round of evaluations kicks off with DBRS Morningstar on September 20, followed by Scope ratings on October 25.

November 22 has been set for the second assessment by Moody’s, while the cycle concludes in December with evaluations on December 6 by Fitch and December 13 by Standard and Poor’s.

These assessments take place amidst global uncertainty due to the ongoing war in Ukraine and the conflict in the Gaza Strip, which has had dire regional ramifications, including in the shipping, hospitality, and tourism sectors.

What is more, expectations are high that central banks will begin a process of lowering their key interest rates in the latter half of the year due to the easing of inflation.

However, as noted by all international organisations, risks to economic growth persist due to ongoing economic instability.

The common denominator across all rating agencies for the upgrade of Cyprus’ creditworthiness lies in the country’s continued fiscal discipline, surpluses leading to a reduction in the debt-to-GDP ratio, and being able to still record growth amidst a challenging economic landscape.

In addition, the focus remains on further progress in the banking system, sustaining profitability, and reducing risks in bank balance sheets, notably regarding non-performing loans.

Moreover, all agencies anticipate economic activity to benefit from the implementation of the National Recovery and Resilience Plan.

It is also worth noting that this year’s evaluations included the aforementioned European agency Scope ratings, based in Berlin, which, since November 2023, has been added to the External Credit Assessment Institutions (ECAIs).

The agency joined DRBS Morningstar, Fitch, Moody’s, and Standard and Poor’s, constituting part of the broader framework of the European Central Bank to mitigate the risk of securities used in monetary policy operations.