GREECE
Macro/Political:
- On November 26th Greece will auction 26 Weeks T-Bills with maturity May 29, 2026. The amount to be auctioned is EUR 500mn.
Source: PDMA
CYPRUS
Macro/Political:
- Fitch revised Cyprus’s outlook to positive from stable and affirmed its A- credit rating. The agency noted that the outlook revision reflects significant public debt deleveraging, as the rapid reduction in general government debt continues, supported by high primary surpluses and solid nominal GDP growth.
The revised outlook also reflects large budget surpluses, with Fitch projecting average fiscal surpluses of 3.2% of GDP for 2025–2027, as well as Cyprus’s strong fiscal track record. In recent years, the country has demonstrated consistent fiscal prudence, backed by broad political and societal consensus around fiscal policy.
According to Fitch, downside risks include a failure to reduce general government debt as a result of structural fiscal loosening, or an external shock that increases vulnerabilities and negatively affects economic growth. Conversely, an upgrade could occur if there is increased confidence that the substantial decline in the debt-to-GDP ratio will be sustained over the medium term, supported by strong primary surpluses and reduced exposure to external shocks.
Source: Fitch
- Moody’s completed its periodic review of Cyprus’s ratings. According to the agency, Cyprus’s A3 rating reflects the country’s high wealth levels and strong growth performance, which is expected to remain robust over the medium term. The agency also noted that public debt continues a sustained downward path, with solid debt-affordability metrics. The stable outlook reflects a balance of risks related to Cyprus’s economic, fiscal, and debt prospects. Moody’s highlighted that susceptibility to event risk is driven by the banking sector and political risks, both of which are considered contained. The agency stated that upward pressure on the rating could arise if sovereign fiscal and debt metrics perform better than currently forecast. Conversely, downward pressure could emerge if fiscal and debt outcomes fall significantly short of expectations, leading to a reversal in the downward trajectory of the public debt ratio.
Source: Moody’s
