Standard & Poor’s Affirms 'BB+/B' Credit Rating on Cyprus

19/03/2018

Standard & Poor’s has affirmed their 'BB+/B’ long-term and short-term foreign and local currency sovereign credit ratings on Cyprus, while noting that the outlook is positive.

“Cyprus’ economic recovery continues unabated, allowing for a reduction in general government debt. The impaired banking system still remains an important vulnerability, however,” according to an announcement.

The credit rating agency says that it could consider raising the ratings on Cyprus in 2018 if the economic recovery and direction of macroeconomic policy provides impetus for further meaningful general government and private sector debt reduction. They also expect to see whether the economy’s external debt metrics improve further, particularly via a decline in its short-term debt burden; and if Cyprus’ credit and monetary conditions continue to converge with those of the eurozone, via a material reduction in Cyprus` unusually high non-performing exposures (NPEs).

At the same time, Standard & Poor’s note that they could revise the outlook to stable if economic growth is significantly lower than currently expected or if a shift in the fiscal stance lead them to believe that general government debt-to-GDP is no longer set to decline over the forecast horizon through 2021.

“We could also revise the outlook to stable if we saw risks emanating from greater economic concentration in certain sectors, for instance, construction or tourism, or if fresh concerns around financial stability emerge while the sector is still impaired” it is added.

The credit rating agency notes, moreover, that Cyprus’ economy expanded by 3.9% in real terms in 2017, outperforming their projection of 3.3% for the year.

S&P forecasts that real GDP will grow by 2.8% on average over 2018-2021, supported by investment activity and service exports, while private consumption decelerates as households increase debt servicing.


 


 

乐浦地产是 可用的項目

查看所有项目

珊瑚湾海滨别墅

Coral Seas Villas is located on the coastline in a generally pristine area within walking distance to the Coral Beach Hotel, a 15 minute drive to the metropolitan Paphos ...

阿多尼斯海滨别墅

阿多尼斯海滨别墅是乐浦地产新推的超豪华项目。它位于帕福斯最优越的地段,与其大获成功的姐妹项...

Limassol 德尔玛

德尔玛项目诠释了塞岛建筑设计的“新浪潮”:这座曲线设计的高楼充分利用了绵延170多米的海岸线,使每个公寓的住户均能尽...

卡瑞马斯村

Kamares村是Leptos房地产公司在塞浦路斯创造的最高档物业,在东地中海最别具一格。该项目的特点是其精致的石拱门和优越的地理...