Rating agency Fitch Ratings Friday affirmed Cyprus' sovereign debt rating at 'B+'. The outlook is 'positive'.

"Cyprus is undergoing a major financial sector, fiscal, and economic adjustment following the 2013 banking sector crisis and the ensuing EU/IMF bail-out programme. The country's early exit from the macroeconomic adjustment programme in March 2016 reflects a track record of fiscal consolidation, progress in financial sector restructuring and economic recovery," Fitch said.

The agency also said that the country's economic recovery was underway.

The economy is expected to expand around 2.0% in 2016-17, driven by household consumption, according to Fitch's forecasts.