Moody’s has upgraded the Bank of Cyprus’s deposit rating by one notch to A3, maintaining a stable outlook.

According to available data, Bank of Cyprus now holds the highest deposit rating among Greek and Cypriot banks, a development that sends a strong signal about the institution’s credibility and financial stability.

The Moody’s report attributes the upgrade to the following key factors:

• Continued improvements in the quality of the bank’s assets

• Expectations of further reduction in residual asset risks

• Anticipation that Bank of Cyprus will maintain stable profitability and strong capital ratios, supporting its improved standalone financial strength

• A low-cost deposit base, largely retail-driven, and the bank’s high balance sheet liquidity

Moody’s noted that the bank’s improved financial profile reflects its ability to navigate current macroeconomic conditions while maintaining operational resilience. The upgrade also signals confidence in the bank’s ability to sustain its performance going forward, backed by strong fundamentals.