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Bank of Cyprus got a financial thumbs-up from Fitch Ratings on Wednesday, with the agency upgrading the bank’s long-term rating to ‘BBB’ from ‘BBB-’ and giving its Viability Rating the same bump. The outlook is stable, Fitch said, signaling that the bank is now seen as more resilient and better positioned for the future.
Fitch credited the upgrade to a mix of factors: a healthier business environment in Cyprus, falling unemployment, lower private-sector debt, and steady economic growth. “Improved prospects for Cypriot banks” were key, the agency said, noting that the island’s banks are now operating in a more robust financial climate.
The rating also reflects the Bank of Cyprus’ own progress. Problem loans from past years have been trimmed down, profitability looks strong, and capital buffers are in good shape. Fitch highlighted the bank’s “strong competitive position” in Cyprus’ relatively small market, as well as stable deposits and improved asset quality.
For everyday Cypriots, the upgrade may not change how they bank day to day, but it sends a signal that the country’s biggest lender is on solid footing and that the wider Cypriot economy is gaining momentum.
