Moody’s gives another boost to Panama rating
Moody's Investors Service has raised the rating on Panama's government bonds to Baa2 from Baa3. The agency also changed the country's outlook from stable to positive.
The upgrade reflects Panama's growing economy, which is leading the region, and continuous improvement in debt indicators. Panama's economy has grown at an average rate of 7.3 percent during the last 10 years, the highest recorded in Latin America and among the highest in the world. Despite the weakening of external conditions, Panama continued to show a relevant economic dynamism during the first half of 2012 when the GDP increased at an annualized rate of 10.6 percent, about the same pace as in 2011.
Even if recent rates of growth are not sustainable, medium-term growth prospects remain strong thanks to the expansion of the Panama Canal and other government projects, as well as the implementation of the free trade agreement with the United States.
The combination of these elements should improve the position of Panama as a center of global logistics. Panama's economy will also benefit from a new massive gold and copper mining project. As a result of strong economic growth, the debt-to-GDP indicator fell from a peak of 70 percent of GDP in 2004 to 41.5 percent in 2011, slightly above the median of the 38 countries qualified as Baa.
Moody’s gives another boost to Panama rating
Moody's Investors Service has raised the rating on Panama's government bonds to Baa2 from Baa3.
The agency also changed the country's outlook from stable to positive.
The upgrade reflects Panama's growing economy, which is leading the region, and continuous improvement in debt indicators. Panama's economy has grown at an average rate of 7.3 percent during the last 10 years, the highest recorded in Latin America and among the highest in the world. Despite the weakening of external conditions, Panama continued to show a relevant economic dynamism during the first half of 2012 when the GDP increased at an annualized rate of 10.6 percent, about the same pace as in 2011.
Even if recent rates of growth are not sustainable, medium-term growth prospects remain strong thanks to the expansion of the Panama Canal and other government projects, as well as the implementation of the free trade agreement with the United States.
The combination of these elements should improve the position of Panama as a center of global logistics. Panama's economy will also benefit from a new massive gold and copper mining project. As a result of strong economic growth, the debt-to-GDP indicator fell from a peak of 70 percent of GDP in 2004 to 41.5 percent in 2011, slightly above the median of the 38 countries qualified as Baa.
