On March 17th, Standard and Poor’s upgraded the sovereign rating of Cyprus by one notch (from BB to BB+) with a stable outlook. The decision confirmed the expectations of 5 out 11 economist’s StockWatch poll. The decision reflects the better than expected growth performance and fiscal progress so far. In all past editions we have extensively discussed the progress of the Cypriot economy in the last three years. Also on March 17th, Moody’s announced its decision to upgrade Serbia’s issuer rating to Ba3 from B1, with stable outlook. The agency acknowledged the significant fiscal consolidation that has taken place over the last couple of years, which has inhibited the rise in public debt and recent implementation of structural reforms that increase the resilience of the country’s economy, which also bodes well for potential growth.