52049
Fitch Upgrades Rating of Cyprus Economy
Fitch Upgrades Rating of Cyprus Economy

Fitch Upgrades Rating of Cyprus Economy

Fitch Upgrades Rating of Cyprus Economy

Fitch Ratings has upgraded Cyprus’ long-term foreign and local currency Issue Default Ratings by one notch to BB- from B+, the agency announced on Friday.
“The issue ratings on Cyprus’ senior unsecured foreign and local-currency bonds have also been upgraded to BB- from B+. The outlooks on the long-term IDRs are positive. The Country Ceiling has been upgraded to BBB- from BB+ and the short-term foreign and local currency IDRs have been affirmed at B,” Fitch said in a press release, SigmaLive reported.
According to the ratings agency, “Cyprus is continuing to make strong progress in its adjustment following the 2013 banking crisis.”
“Its exit from the EU and IMF program in March took place in a context of out-performance of fiscal and economic program targets, success at lifting capital controls, and steps taken to restructure the banking sector,” the press release adds.
“The economic recovery, now into its second year, is supporting employment, bank asset quality adjustment, and public finances,” Fitch points out.
Fitch is projecting “GDP growth of 2.9% in 2016 (from 1.9% projected a year earlier). It refers to the positive results of tourism and the drop recorded in unemployment.
“For 2017-2018, GDP growth of around 2.5% will benefit from an expected increase in foreign direct investment,” it says.
“Downside risks to the outlook stem from banking sector deleveraging and the weak external environment,” the ratings agency warns.
Referring to the banking sector it notes that it “is gradually strengthening, evident in the pick-up in deposits and stable capitalization.”
“Deleveraging is ongoing, with overall sector assets down to 3.7x GDP in June 2016 from almost 6x in 2009,” it says.
It adds that “the property sector remains illiquid but prices seem to be stabilizing at around 30% below their 2008 peak.”

 

Short URL : https://goo.gl/bV7jz4
  1. https://goo.gl/AZzG6z
  • https://goo.gl/O9nBrO
  • https://goo.gl/CVy6rA
  • https://goo.gl/KQSX9V
  • https://goo.gl/AF4EpP

You can also read ...

China Challenges US Solar Panel Duties
China says it is challenging a US tariff hike on solar panels...
In a retaliatory move, President Recep Tayyip Erdogan’s government on Wednesday announced higher tariffs on some US imports, namely on passenger cars (120%) and leaf tobacco (60%).
Turkey has raised tariffs on some US imports, including...
File picture of Kim Jong-un (L) and Moon Jae-in at the truce village  of Panmunjom, South Korea.
South Korea President Moon Jae-in on Wednesday offered a bold...
World trade volume growth peaked in January at almost 5.7% year-on-year but nearly halved to less than 3% by May.
Cyclical indicators point to slower and more uneven growth in...
Nigeria CPI Drops to 11.14 Percent
Nigeria’s National Bureau of Statistics says the consumer...
Surging Inflation Mars Philippines Growth
The Philippine economy in 2018 is a story that can be summed...
Moody’s Predicts Slower Fiscal Progress in S. Africa
South Africa’s fiscal consolidation will be slower than the...
Sudanese Hit by Bread Shortages
Bread shortages have hit Sudan, with wheat traders blaming a...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus