By Stelios Orphanides
Capital Intelligence, the Limassol-based rating company, said that it upgraded Cyprus’s long-term foreign currency sovereign rating a notch to BB- and affirmed the B short-term foreign currency rating.
The outlook for both ratings is stable, said in an emailed statement.
Capital Intelligence said that the upgrade was on Cyprus’s better than expected economic and fiscal performance, the government’s improved access to capital markets abroad, improved conditions in the banking sector and an expected drop in public debt.
While the banking sector was successful in regaining depositor confidence, banks still have to reduce their high level of non-performing loans and implement reforms, including foreclosure, it said.