President Nikos Christodoulides has welcomed Cyprus’ credit rating upgrade from A- to A by Fitch credit rating agency, saying on Saturday that it confirmed the resilience of the Cyprus economy.

“This development comes a few weeks after the corresponding upgrade by S&P Global Ratings and constitutes yet another strong confirmation of the resilience of the Cypriot economy, fiscal responsibility and the stable course of the country,” Christodoulides said.

Fitch said the ratings upgrade was based mainly on the continued positive fiscal path of the Republic in 2026, which is expected to be maintained in the period 2027-2028, and the continued and extremely rapid reduction in public debt, which decreased by 77 per cent in the period 2020-2026 and is expected to decline to 36.6 per cent of GDP by 2028. Other factors included the reduction in interest expenses, as a result of debt deleveraging, which expands the available fiscal space. At the same time, Fitch said, borrowing costs are expected to remain manageable to ensure the continued growth and strong resilience of the Cypriot economy.

“A stronger economy means more and better-paid jobs, more investment and new opportunities. It means greater potential for targeted social policies and investments in health, education, the welfare state and housing. It means income support, better services and substantial support for citizens. Above all, it means that we are building a more secure base for future generations,” Christodoulides said.

“Combined with historically low unemployment levels and the drastic reduction in public debt, the Cypriot economy is today stronger, more resilient and more competitive.”

Finance Minister Makis Keravnos also welcomed the upgrade.

“The government will continue to implement its prudent fiscal policy that allows us to support society, businesses and households, to ensure the future course of the economy and at the same time to have the necessary fiscal margins to deal with unforeseen situations,” Karavnos said.

He added Fitch’s upgrade of Cyprus’ credit rating from A- to A, with a parallel change in the outlook from positive to stable, was a continuation of a chain of successive upgrades of Cyprus, which are based on the results and prospects of the Cypriot economy and clearly demonstrate the confidence that the international rating agencies demonstrate in the economic policy followed by the government.

“I cannot but express my satisfaction with this new upgrade of Cyprus by Fitch, which maintains and strengthens the creditworthiness of the Cypriot economy at grade A, demonstrating the dynamics of the Cypriot economy and the continuous improvement of fiscal and macroeconomic data, while the economy continues to demonstrate its resilience in an international environment of intense geopolitical uncertainties and military conflicts,” he said.