Panama credit outlook gets another boost
Panama’s credit outlook was moved upward to to positive from stable by Standard & Poor’s Ratings Service on Thursday as the economy grows faster than expected.
The foreign currency long-term debt rating was moved to to BBB-, the lowest investment grade level, in May of last year.
“The positive outlook is based on our view that stronger growth and increased infrastructure spending could result in faster-than-expected improvement in the sovereign’s financial profile,” analysts Roberto Sifon Arevalo and Joydeep Mukherji wrote in a report from New York. “The positive outlook reflects the likelihood of an upgrade if the better-than-expected performance of Panama’s economy continues over the next year or two.”
Fitch Ratings lifted Panama’s credit to BBB, the second- lowest investment grade rating, in June. Moody’s Investors Service has held it at Baa3, its lowest investment grade, since June of last year.
