Spike in Cyprus' debt due to Covid-19 transitory, Moody's says, would consider upgrade only after NPLs reduction

The spike in Cyprus public debt would be transitory and would return in a sustained downward path after the coronavirus crisis wanes, Moody’s rating agency said in its report, noting however that it would consider upgrading Cyprus credit rating following reduction in banking sector risks.
 
“The credit profile of Cyprus (Ba2 positive) reflects its small but wealthy economy, improved economic resilience and the government`s fiscal outperformance in the wake of the country`s banking crisis,” Moody`s Investors Service said in an annual report today.
 
However, it noted that Cyprus faces several credit challenges arising from its relatively undiversified economy and high levels of government, nonfinancial corporate and household debt, adding that “the coronavirus pandemic will lead to a severe deterioration in the country`s economic activity and fiscal position, a

(CNA)

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from Cyprus News Agency
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