Panama's Risk Rating Confirmed

Moodys confirmed that the country's investment grade is Baa1 with a stable outlook, arguing that the economy has a solid performance and that it reflects stability at the macro level.

Monday, November 4, 2019

In 2020, Moody's expects the growth of the Panamanian economy to recover to 4.5%, boosted mainly by a full year of production in the copper mine, according to the forecasts of the international agency.

From the Panama Presidency statement:

October 31, 2019. The risk rating agency Moody's Investors Services (Moody's) reiterated the investment grade of the Republic of Panama, placing it at Baa1 with a stable outlook, highlighting also the solid economic performance and macroeconomic stability of the country.

Moody's report shows that the fiscal order and economic reactivation plans presented by President Laurentino Cortizo Cohen's administration in 120 days of management have allowed Panama to maintain its credibility as a dynamic and diversified economy.

In addition, the report is a seal of confidence in the commitment to fiscal consolidation and economic policy strategies advanced by the current administration of President Cortizo Cohen.

Read full statement (In Spanish).

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More on this topic

Negative Outlook for Panama's Debt

October 2020

Based on the argument that there is no significant fiscal consolidation and sustained economic recovery, the rating agency decided to downgrade the government's long-term issuer rating perspective from stable to negative.

Although the outlook was modified, Moody's decided to maintain the long-term issuer and senior unsecured debt ratings at Baa1.

Moody's Maintains Guatemala's Risk Rating

July 2019

Arguing that the economy reports stable growth, and that a prudent management of monetary and fiscal policy has been made, the agency decided to maintain in Ba1, with a stable perspective, the country's credit rating.

The low fiscal deficit caused by strict controls on public spending and reduced indexes of public indebtedness, as well as a demonstrated economic resilience to extra-economic events, are other of Moody's arguments.

Guatemalan Debt Rating Confirmed

June 2018

Citing a long history of fiscal and monetary policy characterized by prudent management, the rating agency Moody's maintained the country's credit risk rating in Ba1.

From a statement issued by the Bank of Guatemala:

June 2018. Moody's Investors Service maintains the credit risk rating for Guatemala at Ba1 with a stable outlook.  

Moody's Upgrades Panama to Investment grade

June 2010

Moody's Investors Service on Wednesday upgraded Panama's sovereign ratings to investment grade of Baa3 from Ba1.

The change is based on a significant improvement in the country's fiscal and debt positions.

"The anticipated positive impact of fiscal policy initiatives on government accounts and prospects for sustained economic growth are at the core of the upgrade," said Alessandra Alecci, Moody's vice president and senior analyst. "The Panama Canal expansion and an ambitious infrastructure investment program are likely to support strong economic growth in the next few years, boding well for debt dynamics," added Alecci. The outlook is stable.

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