Fitch says it has upgraded Greek Cyprus' long-term foreign-currency issuer default rating (IDR) to 'BB+' from 'BB.'

The credit rating agency says the upgrade of Greek Cyprus' IDRs reflects improved high external financing flexibility since country exited macroeconomic adjustment program in March 2016.

It notes that the weakness of the banking sector remains a risk to public finances and weighs on Greek Cyprus' credit profile, noting that the country's fiscal performance has benefited from very strong cyclical economic recovery, prudent fiscal policy.