![\"Cyprus](\"https:\/\/www.ekathimerini.com\/wp-content\/uploads\/2021\/01\/moodys_web-thumb-large-320x200.jpg?v=1611834768\")
A two-notch upgrade of Cyprus\u2019 debt by Moody\u2019s is a vote of confidence in the island\u2019s economy, the country\u2019s president said on Saturday.<\/p>\n
Moody\u2019s upgraded Cyprus\u2019 long-term issuer and senior unsecured ratings to A3 from Baa2, citing a \u201cmaterial improvement\u201d in fiscal and debt metrics that the rating agency expected to be sustained. It was the first time the island has been in the \u201cA\u201d category, considered upper medium grade, since 2011.<\/p>\n
\u201cA prudent fiscal policy, stability in the financial sector and the constant reforms at the core of our policies is reaping positive results,\u201d President Nikos Christodoulides said in a written statement.<\/p>\n
\u201cThis success is a collective effort, and primarily that of the Cypriot people,\u201d he said.<\/p>\n
Cyprus\u2019 credit ratings started tumbling in 2011 after a domino sequence of events from fiscal slippage, a massive munitions explosion and ever-increasing bank exposure to the debt crisis in Greece pushed the country into an international bailout in 2013.<\/p>\n
In return for financial aid, Cyprus was forced to wind down a major commercial bank and seize a portion of unsecured clients\u2019 savings at another in a process known as a bail-in.<\/p>\n
Moody\u2019s said Cyprus had significantly reduced its government debt ratio since its peak in 2020, ranking among the countries with the largest debt ratio reductions globally. [Reuters]<\/p>\n<\/p><\/div>\n
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