Current:Home > StocksCyprus hails Moody’s two-notch credit rating upgrade bringing the country into investment grade-LoTradeCoin
Cyprus hails Moody’s two-notch credit rating upgrade bringing the country into investment grade
View Date:2024-12-23 20:36:18
NICOSIA, Cyprus (AP) — 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.
President Nikos Christodoulides said he was “deeply satisfied” with the upgrade that he said was the culmination of years of fiscal discipline and will translate into attracting quality foreign investment and creating new jobs.
“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.”
Moody’s said in its statement the upgrade from Ba1 to Baa2 with a concurrent change in outlook from positive to stable is due to previous and continuing economic, fiscal and banking reforms, as well as a significant drop in bad bank loans.
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.
“These developments also support the resilience of the Cypriot economy to external shocks as shown for instance in the context of the pandemic and the Russia-Ukraine war,” the agency said, adding that it expects the Cypriot economy to grow by 2.3% in 2023 and 2.8% in 2024.
It warned that profligate government spending and a jump in the public debt would potentially put “downward pressure” on the credit rating.
Cyprus’ Finance Ministry said the Moody’s credit upgrade brings Cyprus to investment-grade level according to all major credit rating agencies by two notches, with the exception of the DBRS agency which rates the country a notch higher.
The ministry said in a statement it would continue on a “responsible” management of the economy despite the continued challenges the country faces including the war in Ukraine, inflationary pressures and an energy crisis.
A 2013 financial crisis forced Cyprus to seek a multibillion-euro bailout from its eurozone partners and the IMF that included a seizure of savings over 100,000 euros in the country’s largest bank and the shuttering of its second biggest bank. The seized deposits were used to prop up Cyprus’ ailing banking sector.
veryGood! (3319)
Related
- ‘Emilia Pérez’ wouldn’t work without Karla Sofía Gascón. Now, she could make trans history
- Missouri football plans to use both Brady Cook and Sam Horn at quarterback in season opener
- Saudi Arabia says it executed U.S. national convicted of killing and torturing his father
- Nordstrom Rack Early Labor Day Deals: 70% Off Discounts You Must See
- Kelly Rowland and Nelly Reunite for Iconic Performance of Dilemma 2 Decades Later
- Rabbit and Opossum come to life in 'Ancient Night' — a new twist on an old legend
- Everything to Know About the Rachel Morin Murder Investigation
- Chad Michael Murray and Wife Sarah Roemer Welcome Baby No. 3
- Lululemon, Disney partner for 34-piece collection and campaign: 'A dream collaboration'
- Ex-ESPN anchor Sage Steele alleges Barbara Walters 'tried to beat me up' on set of 'The View'
Ranking
- Detroit Mayor Mike Duggan says next year will be his last in office; mum on his plans afterward
- FEMA pledges nearly $5.6 million in aid to Maui survivors; agency promises more relief
- Proud Boys member and Jan. 6 defendant is now FBI fugitive after missing sentencing
- Philadelphia mall evacuated after smash-and-grab jewelry store robbery by 4 using pepper spray
- Timothée Chalamet Details How He Transformed Into Bob Dylan for Movie
- 1 killed, thousands under evacuation orders as wildfires tear through Washington state
- Nissan recalling more than 236,000 cars to fix a problem that can cause loss of steering control
- Red Sox infielder Luis Urías makes history with back-to-back grand slams
Recommendation
-
Will Trump’s hush money conviction stand? A judge will rule on the president-elect’s immunity claim
-
From turmoil to triumph, Spain clinches its first Women’s World Cup title with a win over England
-
Former NBA player Jerome Williams says young athletes should market themselves early
-
Georgia made it easier for parents to challenge school library books. Almost no one has done so
-
BITFII Introduce
-
Ohio State wrestler Sammy Sasso shot near campus, recovering in hospital
-
Miley Cyrus' Mom Tish Cyrus Marries Dominic Purcell in Malibu Wedding
-
House fire kills 2 children in North Carolina, and a third is critically injured