S&P and Fitch upgrade Cyprus

Credit rating agencies Standard and Poor’s (S&P) and Fitch have raised Cyprus’s credit ratings because the eastern Mediterranean island’s government “appears to be meeting” the terms of Economic Adjustment Programme, financed by the European Stability Mechanism and International Monetary Fund.

The bailout program started in March 2013. The agencies evaluations suggest that this reduces risk to Cyprus’ full and timely payment of its debt service. However, while the state reduces its expenses with harsh economic measures, living conditions in the island are getting worse for Cypriots mainly due to the rise of unemployment.

Regarding Cyprus’ credit ratings, S&P has raised its long-term sovereign credit ratings on Cyprus to `B` from `B-`, affirming its short-term sovereign credit ratings at `B`.

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