Risk Rating and Investment Attraction

The latest risk ratings for the issuance of long-term debt of Central American economies identify Panama as the most attractive country to invest in.

Tuesday, March 19, 2019

On March 8, Moody's decided to raise its long-term issuer rating in foreign currency from Baa2 to Baa1, arguing that the outlook remains more favorable in the medium term.

See "Panama's Risk Rating Improves"

The situation of the other countries in the region is not the same, since according to Moody's El Salvador ratings it has a grade of B3, Costa Rica and Nicaragua, B2, Honduras, B1, and Guatemala, Ba1.

Abdiel Santiago, secretary of the Panama Savings Fund, told Martesfinanciero.com that "... The firm is announcing of our country that it has one of the most attractive debts in relation to the debt of countries with similar risk. The new opinion will have the effect of seducing risk-averse investors, which is a good thing."

You may be interested in "Risk Perception and High Financial Cost"

Santiago added that, with the new qualification new investors, who in their "... majority are considered to be of better quality. They get as interested in 'a country's debt' as they do in other investment opportunities."

Among the aspects taken into account by Moody's in its latest rating, it is worth noting that Panama's economic growth and fiscal indicators surpass those of most Baa rated pairs and the outlook continues to be more favorable in the medium term, and that the government has strengthened its fiscal policy framework.

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More on this topic

El Salvador: Moody's Improves Risk Outlook

March 2020

The rating agency kept the country's debt rating at B3, but decided to change the outlook from stable to positive, arguing that the government's liquidity risks have been substantially reduced.

The affirmation of El Salvador's B3 sovereign ratings reflects high public debt ratios and a growing interest burden, the rating agency said.

El Salvador's Eurobonds Issue Qualified

August 2019

After the country issued $1.097 million in Eurobonds for a 30-year term, Moody's gave them a "B3" rating, while Fitch Ratings assigned them a "B".

Fitch Ratings has assigned a 'B-' rating to El Salvador's $1.097 million notes due January 2050. The notes have a coupon of 7.1246%, the agency said.

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.  

S&P Confirms Nicaragua's Debt Rating

February 2018

Standard & Poor's has maintained the rating of B+ for long-term sovereign debt, arguing that economic growth is stable and the burden of public debt remains moderate.

From a statement issued by Standard & Poor's:

On Feb. 16, 2018, S&P Global Ratings affirmed its 'B+' long-term local and foreign currency sovereign credit ratings on the Republic of Nicaragua.

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Pacific Credit Rating Panamá

Organization that operates in Costa Rica, El Salvador, Guatemala and Panama.
Phone: (507) 214 4603

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