By Stephen Nakrosis

 

Moody's Investors Service said Friday it was raising its outlook on Cyprus to positive from stable and affirming the long-term foreign-currency and local-currency issuer and the local-currency senior unsecured ratings at Ba1.

Moody's cited Cyprus' improving debt and fiscal metrics as a driver of its decision. Moody's said economic recovery last year saw a reduction of the fiscal deficit by four percentage points, to 1.7% of GDP. "Cyprus' already favorable debt affordability metrics will likely improve further, helped by a favorable debt structure and long maturity of the debt," Moody's said.

The agency also said Cyrpus' stronger-than-expected economic resilience to Russia's invasion of Ukraine and the pandemic were factors affecting its decision.

Moody's said it "expects that Cyprus' public debt burden will continue to trend down rapidly in the coming years," and it currently forecasts a debt ratio of around 88% of GDP in 2023.

 

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

 

(END) Dow Jones Newswires

August 19, 2022 17:10 ET (21:10 GMT)

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