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] Morningstar DBRS published a commentary asserting that economic convergence is expected to continue across several medium-income European economies. ^[3] Morningstar DBRS projects Cyprus's public debt-to-GDP ratio will fall from 49.9% in 2026 to below 40% by 2029. ^[4] Morningstar DBRS said the positive outlook reflects its expectation that Cyprus will maintain a strong fiscal position and continue reducing public debt. ^[5] 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. ^[6] Morningstar DBRS stated that stronger economic growth, continued primary budget surpluses, and an expected further fall in public debt relative to the economy should shield Greece from much of the pressure created by higher borrowing costs. ^[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]