The ratings agency S & P on Monday raised the credit rating of Panama to "BBB" from "BBB-" with a stable outlook
The agency saying t expects growth to remain solid over the medium term driven by high investment and diversification.
"The upgrade reflects our view that the flexibility of economic policy in Panama continues to grow, diversify and gain in strength," the agency said in a statement.
But, the statement said, " Panama remains vulnerable to changes in investor confidence, by its small domestic market and its strong dependence on external financing."
Moody's Investors Service has a rating of BAA3 for Panama with a positive outlook. Fitch r ates Panama BBB with stable outlook.