Fitch Ratings affirms Cyprus's A- credit rating and highlights fiscal resilience

International credit rating agency Fitch Ratings has affirmed the Republic of Cyprus's long-term credit rating at 'A-' with a positive outlook. The agency cited strong fiscal performance, per capita income above the 'A' category average, and policy reliability supported by EU and Eurozone membership. While the ongoing geopolitical tensions in the Middle East and the Persian Gulf pose risks such as inflationary pressure and current account balance deterioration, Fitch expects growth to remain above 2%. The report also highlighted that Cyprus is among the EU nations with significant fiscal space to absorb a potential energy crisis resulting from the conflict in Iran. Finance Minister Makis Keravnos welcomed the assessment as a confirmation of the government's fiscal discipline and consistent economic policy. Despite positive growth, the agency noted challenges including regional political tensions related to the island's division and governance indicators.