Credit‑rating agency Standard & Poor’s has reaffirmed Cyprus’ long‑term rating at “A‑” and maintained a positive outlook, saying the country’s economic fundamentals remain solid despite heightened instability in the Middle East.
In its latest assessment, S&P said the Cypriot economy has shown resilience, noting that the impact of the conflict in the region has so far been limited and that the positive trajectory of recent years is expected to continue once conditions stabilize.
The agency forecasts growth of around 3% in the coming period — slower than previous years but still strong compared with most EU economies.
It added that Cyprus’ sharp reduction in public and external debt has strengthened its ability to absorb external shocks, including those linked to the Middle East.
S&P warned, however, that the course of the war remains the key risk factor for Cyprus.
A prolonged conflict could have significant global repercussions, but the agency said the Republic has the capacity to manage potential fallout.
Maintaining a positive outlook, S&P said, reflects confidence in the state’s crisis‑management ability and the overall strength of the economy.
