Fitch reaffirms Cyprus ratings

Fitch Ratings, the international rating agency has affirmed Cyprus’ratings at Long-term foreign currency “A+” with a Positive Outlook and Short term foreign currency “F1”.

At the same time, the agency affirmed the Long-term local currency rating at “AA” with a stable outlook. The agency’s ratings were supported by Cyprus’ high per capita income level and its dynamic

services oriented economy but identified the General Government Deficit as one of the weakest links in Cyprus EMU ambitions, which however improved by 2 pps to 4.1% in 2004.

Overall the agency stipulated that Cyprus has made steady progress since 2004 and looks on track to adopt the euro in 2008 as currently planned.