NICOSIA, Cyprus — Cyprus on Saturday hailed a two-notch upgrade by credit ratings agency Moody’s to bring the east Mediterranean island nation back into investment-grade territory a decade after a financial crisis left the country on the brink of bankruptcy.
“We unwaveringly continue on this path as a government … and so we will carry on with our governance,” Christodoulides said in a written message. “We will carry on buttressing our economy and expanding its dynamic course.” The agency pointed to “sustained structural improvements” in the labor market, a rebound in public and private investments, a continuing drop in public debt and a jump in productivity that resulted in economic growth by more than 4% between 2014-2023.
It warned that profligate government spending and a jump in the public debt would potentially put “downward pressure” on the credit rating.