Cyprus Gets Fitch Upgrade

Fitch Ratings has upgraded Cyprus’ long-term debt in foreign currency by one notch to ‘BB’, one upgrade short of an investment-grade rating, it announced on Saturday, Yahoo reported. In a statement, the ratings agency said the upgrade reflected a “strong improvement in the performance and outlook of its public finances” as the budget is on track to record a 1% surplus of gross domestic product in 2017. Cyprus’ debt, it added, was expected to drop below 100% by year-end, compared with 108% at the end of 2016. “The economic recovery has broadened and GDP growth has consistently outperformed forecasts over recent years,” the announcement said. “Fitch now forecasts an average 3.5% GDP growth in 2017 and 2018, in light of the recovery in the first half of 2017 (3.6%) and improving confidence indicators.” The recovery, it added, is “also reflected in the labor market”, where unemployment has dropped to 10.6% in this year’s second quarter from a crisis peak of 16% in 2014.