On the back of a declining euro exit risk, as evidenced by the exit from the EU/IMF 3-year bailout programme last March, Cyprus’ short-term political risk is upgraded to its pre-euro crisis level, i.e. category 1. Financial and structural reforms have been successfully implemented and are deemed to have put the country back on a path of sustainable growth. Besides, Credendo Group’s payment experience since resuming cover on short-term transactions in March 2014 has been good. The cover policy may now be relaxed, allowing cover again of transactions with the public sector. Cyprus’ public finances have indeed significantly improved, and the country has regained full access to capital markets.