Morningstar DBRS upgraded Cyprus's credit outlook from stable to positive in 2026 while affirming the country's credit rating at A. ^[1] Morningstar DBRS reported that Greece is among the eurozone economies least exposed to the impact of prolonged high interest rates despite its heavy public debt burden. ^[2] President Nikos Christodoulides of Cyprus announced on 2025-08-02 that projects worth €3.5 billion will be carried out across Cyprus during the EU's 2028-2034 funding period, with approximately €2.5 billion from the EU's Multiannual Financial Framework and €1 billion from national contributions. ^[3] Morningstar DBRS published a commentary asserting that economic convergence is expected to continue across several medium-income European economies. ^[4] Morningstar DBRS said the positive outlook reflects its expectation that Cyprus will maintain a strong fiscal position and continue reducing public debt. ^[5][6] The Ministry of Finance forecasts Cyprus's fiscal surplus will narrow to 2.3% of GDP in 2026 from 3.4% in 2025, then widen to 3.6% by 2029. ^[7] The analysis examined the effects of a higher for longer interest-rate environment on government borrowing costs and debt dynamics in nine eurozone countries, including Greece, Germany, France, Italy, Spain, Portugal, Belgium, Austria, and the Netherlands. ^[8]