S&P affirms Cyprus rating, with a positive outlook

Cyprus's sovereign credit rating has been affirmed at just one notch below investment grade with a positive outlook by Standard and Poor's rating agency, a statement made available in Cyprus on Saturday said.

The statement by the rating agency said that it may consider raising its present BB+/B rating to investment grade later in 2018, provided that the economic recovery following Cyprus's 2013 bailout continues to provide "impetus for further meaningful general government and private sector debt reduction."

It added that S&P also expects to see a decline in Cyprus's short-term debt burden and further convergence of the island's monetary conditions with those of the eurozone via a material reduction of unusually high nonperforming loans (NPLs).

However, it also warned that its outlook could be revised from positive to stable should there be lower-than...