NICOSIA, Nov. 27 (Xinhua) — Rating agency Moody’s Investor’s Services on Monday issued a warning on the bailed-out Cypriot economy, saying it is “highly susceptible to every risk”.

In a report issued after its upgrading of the Cypriot economy in July, Moody’s said it retained its grading with a positive outlook on account of the big ratio of non-performing loans which burden the banking system.

Cyprus was pulled back from economic meltdown under a three-year 10-billion-euro economic assistance package by the Eurogroup and the International Monetary Fund.

At the end of its bailout the eastern Mediterranean island achieved a robust growth, one of the highest among EU countries, a reduction of its sovereign debt and access to international markets.

“However, Cyprus’ debt metrics still remain vulnerable to a negative growth, fiscal or a combined shock scenario,” with the island’s economy being “susceptible to every risk” given the vulnerabilities of the banking sector which still struggles with a non-performing loans ratio of around 45 percent, Moody’s said.

Yet it said that the banks managed to improve their standing through restructuring and selling of non performing loans.

It also added that the positive outlook on Cyprus’ sovereign rating reflects Moody’s view that improvements in economic resilience and fiscal strength are likely to be sustained.

Moody’s projected that Cyprus’ economic output, expected to increase 3.5 percent this year, is forecast to expand 3.2 percent in 2018.

These figures are slightly lower than the estimates by the Ministry of Finance which put growth at 3.7 percent this year and 3.5 percent in 2018.