Newsroom
The Bank of Cyprus has just hit another major milestone—Fitch Ratings has upgraded the bank to investment grade, marking the third global rating agency to do so. With Moody’s, S&P, and now Fitch all giving their stamp of approval, the Bank of Cyprus has officially regained its place among top-rated financial institutions.
"This is a significant milestone for both the Bank of Cyprus and the Cypriot economy," the bank stated following the announcement.
Fitch Boosts Bank’s Credit Rating
Fitch upgraded the bank’s long-term credit rating to BBB- from BB+, while also raising its sustainability rating to bbb- from bb+, maintaining a positive outlook.
What’s behind the upgrade? According to Fitch, it’s a mix of factors:
- Stronger asset quality – Non-performing loans (NPE) have dropped to just 1.9% as of December 31, 2024.
- Robust capital position – The bank’s Common Equity Tier 1 (CET1) ratio stands at an impressive 19.2%.
- Market leadership – As Cyprus’ largest bank, Bank of Cyprus holds a dominant position in the financial sector.
- Healthy profitability – Despite falling interest rates, Fitch expects the bank to maintain solid earnings.
What This Means for Cyprus
The positive outlook isn’t just about the bank—it reflects growing confidence in Cyprus’ economic future. Fitch highlights continued economic growth, declining unemployment, and reduced private sector debt as key factors improving the banking sector’s stability.
By clearing out legacy problem assets and maintaining strong capital reserves, Bank of Cyprus has strengthened its financial foundation, making it well-positioned for future growth.
With all three major rating agencies now recognizing the bank’s stability and potential, this upgrade is not just a win for Bank of Cyprus, but a vote of confidence in the country’s economy as a whole.
