Cyprus is only one grade away from reaching S&P’s investment grade, four grades away for Moody’s, three grades away for Fitch, and five grades away for DBRS.

An investment grade credit rating indicates a low risk of a credit default, making it an attractive investment vehicle.

Reaching investment grade would increase Cyprus’ standing in the markets, including the possibility of issuing bonds with lower interest rates.

The outlook assessment by Fitch, Moody’s and DBRS is positive, while for Standard & Poor’s it is stable.

September is seen as a crucial month, since Standard & Poor’s will issue its credit rating for Cyprus, with an upgrade allowing Cyprus to reach the investment grade after five years.

Cyprus had reached as low as twelve grades below the investment grade.

On July 28, a rating by Moody’s is expected, with the next one being scheduled for November 17.

Fitch is expected to announce its rating for Cyprus on October 20, while DBRS will announce its rating on June 2, and then on December 1.

Fitch and Standard & Poor’s have upgraded the solvency of the long-term bonds of the Cyprus Republic by 1 grade to ‘BB-‘ and ‘B1’ in autumn of 2016, reflecting the positive prospects of the economy.

The outlook for Cyprus was turned from stable to positive, reflecting the increased possibility of an upgrade for the country in the next twelve months.

There was a period when the solvency of the Cyprus Republic was rated by Fitch as ‘AA’ in 2002. It decreased to ‘AA-‘ in 2007 and ‘A-‘ in 2011.

Seven more downgrades followed, with a slow trend towards upgrades showing itself from July 2013 onwards.

Source: InCyprus