Moody's changes Panama view to negative

Moody's Investors Service said it changed the outlook on the government of Panama to negative from stable.

Concurrently, the agency affirmed the long-term issuer and senior unsecured debt ratings at Baa2 and the senior unsecured shelf ratings at (P)Baa2.

“The change in outlook to negative reflects rising fiscal pressures stemming from an increasingly rigid spending structure related to upward trend in wages, transfers and interest payments. Additional pressures relate to prospects of persistent deterioration in the financial position of the social security's defined benefit program, with projections indicating its reserves will run out by 2024,” Moody’s said in a press release.

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