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Moody's upgrades its credit opinion on Cyprus
2006-06-21 17:44:06

Nicosia, Jun 21(CNA) -- Moody's House, one of the world's premier rating agencies, revised in its May report the credit potential of the Republic of Cyprus as regards foreign currency.

An official press release by the Cypriot Ministry of Finance says that the credit opinion rate given to Cyprus is ''A2 positive'', which is higher compared to ''A2 stable'', which was given in the previous evaluation.

The credit strength evaluation of Cyprus in domestic currency was also improved from ''A2 stable'' to ''A2 positive'', a development that would strengthen the government?s credit worthiness and further improve the terms of financing.

Moody?s evaluation took into consideration the viable growth rate, the maintenance of inflation in relatively low levels, the stability of exchange rate, and the fact that Cyprus is in the process of budgetary purification that contributes to the continuous improvement of public finances.

''These factors create favorable conditions, so that Cyprus fulfills in 2007 the Maastricht Treaty criteria and adopts, as scheduled, in 2008, the common European currency'', the press release says.

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