Cyprus: Standard and Poor’s raises a notch long-term rating to ‘B’ – Release

The rating agency Standard and Poor’s raised Friday by one notch long-term rating of Cyprus, indicating consider the increase again in the next twelve months if economic performance continued to improve.

The S & P has increased the long-term rating of Cyprus “B-” to “B” with a stable outlook, due to ” better than expected. “

” The Government continues to implement economic adjustment program, (…) reducing the risk of repayment of the debt in a timely economic and fiscal performance “says S & P in a statement.

On the verge of bankruptcy, Cyprus was granted in spring 2013 bailout of 10 billion euros by the European Union (EU) The International Monetary Fund (IMF) and the European Central Bank (ECB).

This aid plan is subject to stringent conditions, including the privatization of key public services.

to justify raising its rating, the S & P also argues that the gross domestic product (GDP) Cyprus contracted less than expected last year (about 5.4% in 2013) and considers the country will be able to repeat this in 2014 “outperform.”

Also, another rating agency, Fitch, has raised the prospect of the note attached to Cyprus from “negative” to “stable “because of” progress in the implementation of the economic adjustment program, “which includes reforms to put right its financial sector, restore the health of its public finances and transform its economy in depth.

The rating given by Fitch remains unchanged at B-.

In a statement, the Cypriot President Nicos Anastasiades welcomed the decisions of the two rating agencies, saying they are ” the best reward for the efforts of the government and society as a whole to curb the unprecedented consequences of the economic crisis. “

He noted that these increases vote for one, and perspective to the other is not meant to mean the end of the recession.

“We are not able at this time to say whether we have overcome our problems, but these increases confirm that we are moving in the right direction, “he judged.

satisfecit Combined with the Trio donor, after three reviews of the developments on the island,” we can say that they provide a solid base (…) for a return to economic growth as quickly as possible, “said the president.

M. Anastasiades stated in particular that the best ratings help Cyprus to attract foreign investors.

Cypriot President also reiterated the government’s commitment to respect the austerity program, while commending the population ” his patience and maturity “to face difficulties.

AFP