S&P ups Panama long-term view to stable

Standard & Poor's said it revised its outlooks on its long-term sovereign credit ratings on the Republic of Panama to stable from negative and affirmed its BB long-term sovereign credit ratings on the republic.

The outlook revisions reflect expected improvement in the government's fiscal deficit and debt dynamics following the recent passage a fiscal reform package and prospects for social security reform, the agency said.

S&P said the ratings on Panama reflect a stable political environment. Since General Manuel Noriega's dictatorship (1985-1989) ended, the presidency has alternated between the country's two main political parties, whose chief policy differences center on the size and role of the state in the economy. Panama has undergone major political and institutional changes since 1999, including the transfer of the Panama Canal. Long-standing monetary stability has been anchored by use of the U.S. dollar as the official currency since 1904.

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