Cyprus has kept its 'A' long-term credit rating. This is from Morningstar DBRS. The rating shows the country's economy is growing well. It also shows good financial management. The agency also gave Cyprus a good short-term rating. The outlook for all ratings is stable. This means the agency is positive about Cyprus's financial future.
The economy of Cyprus has grown a lot. Real GDP grew by 3.8% in 2025. This was because people spent more money. The service export sector also did very well. Cyprus has also improved its finances. It has had budget surpluses for several years. From 2022 to 2025, surpluses were about 2.8% of GDP each year. This has helped reduce the country's debt. Public debt was 60.6% of GDP in late 2025.
Morningstar DBRS gave a 'stable' outlook for several reasons. The steady economic growth is important. Cyprus's membership in the EU also helps. It means the country has good rules and institutions. The banking system is strong. Also, the political situation is stable. This makes investors feel confident.
However, there are also some challenges. The economy is small. It depends a lot on services. This makes it vulnerable to problems in other countries. Labour productivity is not very high. The country also has a current account deficit. These are ongoing issues.
The current world situation also affects the rating. Recent problems in the Middle East create some uncertainty. Morningstar DBRS said the impact depends on how long the conflict lasts. However, Cyprus has good financial reserves. These can help reduce any negative effects. These reserves can protect important areas like tourism. They can also help people's spending power.
The 'A' rating shows that other countries trust Cyprus's economy. The stable outlook means Cyprus is strong. But it must also watch out for outside risks. This rating shows a balance of good points and potential problems.