Cyprus is heading into a busy September for sovereign credit ratings, with DBRS Morningstar, S&P Global Ratings and Capital Intelligence Ratings set to review the country as economic growth remains well above the EU average.
DBRS will announce its decision on September 4, followed by S&P and Capital Intelligence on September 18. Fitch and Moody’s are scheduled to conduct their next assessments in November.
Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram
Cyprus Holds Investment-Grade Ratings
All five major international agencies currently assign Cyprus investment-grade ratings, with recent assessments pointing to strong economic growth, sound public finances and a resilient banking sector.
DBRS confirmed Cyprus at A with a stable outlook in March, while S&P reaffirmed an A- rating with a positive outlook. Capital Intelligence maintained Cyprus at BBB+ with a stable outlook. Fitch later retained its A- rating with a positive outlook, while Moody’s kept Cyprus at A3 with a stable outlook.
Economy Grows 3.3% In First Half
Cyprus’ economy expanded 3.3% during the first half of 2026, according to Finance Minister Makis Keravnos, roughly three times the EU average. Unemployment stood at 4%.
Independent forecasts point to slower growth ahead. The Economics Research Centre of the University of Cyprus expects GDP growth to ease from an estimated 3.8% in 2025 to 2.7% in 2026 before recovering to 3.1% in 2027.
For comparison, second-quarter GDP increased 0.5% across the EU and 0.4% in the euro area from the previous quarter, according to Eurostat.
Inflation And Fiscal Policy Remain In Focus
Inflation increased from 0.5% in January to 3.1% in June, with the government forecasting a rate of around 4% by year-end. Authorities have allocated €200 million for measures aimed at easing the impact on households, while any extension of the reduced fuel tax will depend on economic developments.
Despite those pressures, Cyprus recorded a fiscal surplus equivalent to 1.1% of GDP in the first half of 2026. The government expects a full-year surplus of about €900 million and says the stronger fiscal position is supporting more than €1 billion in social policies while allowing it to repay around €1 billion of debt annually.
September Reviews Will Test The Outlook
The upcoming decisions will give investors a fresh assessment of whether Cyprus can maintain its strong economic and fiscal performance as growth moderates and inflation remains elevated.
With all major agencies already assigning investment-grade ratings, any change in Cyprus’ rating or outlook could affect its borrowing costs and position among international investors.







