In the upgrading the performance of government bonds of Cyprus to B3 from Caa3 proceeded the rating agency Moody’s, changing the outlook from positive to stable.
According to the announcement of the agency, the upgrade reflects the progress made so far in addressing the key challenges, macroeconomic stability, fiscal consolidation and stability of the banking sector.
Key in this upgrade, according to the Moody’s, were mainly two factors: First, the consolidation of the financial situation, as illustrated by the expected return to a primary surplus in 2014, and the expectation that the public debt will stabilise in 2015. Despite the upgrade, the agency notes that there remain significant credit challenges.
Deputy government spokesperson, Victoras Papadopoulos, said that the government considers as crucial the fact that key to the upgrade were the consolidation of the financial situation and the return to a primary surplus in 2014, but also the expectation that the debt will stabilise in 2015.
Moreover, he adds, the government welcomes Moody’s findings for the stabilisation of the financial sector, as well as for the fact that the financial situation of Cyprus has exceeded the targets set by the troika.