Standard & Poor has upgraded Cyprus' sovereign rating to investment grade and assigned it a BBB-. The agency placed the outlook as stable as risks from high private and public debt offset strong growth prospects. This upgrade to investment grade after around 6 years marks a cornerstone in the recovery process of the Cypriot economy and is a clear sign of the strong growth and recovery of the economy.

The ratings agency stated that it expects strong economic growth through 2021 and a reduction of public debt. According to the agency, the Cypriot economy is anticipated to expand 4% this year and expected to grow another 3.5% next year. Further, the agency believes that the acquisition of the Co-op's healthy operations by Hellenic Bank will help reduce the banking sector's non-performing exposures.