Fitch rates Panama notes BBB

Fitch Ratings said it assigned a BBB rating to Panama’s $1.25 billion global bond issuance maturing March 16, 2025.

The bonds have a coupon rate of 3.75%.

The proceeds will be used for general budgetary purposes and liability management transactions, Fitch said.

The ratings are underpinned by the continued outperformance of Panama’s dynamic and diversified service-based economy, the agency said.

Fitch said it forecasts that growth will average 6% from 2014 to 2016, supported by the Panama Canal expansion and its spillovers into other logistics activities, continued public investment and positive prospects for mining, energy and tourism.

These structural strengths are balanced against a relatively narrow and volatile tax revenue base, weak fiscal policy credibility as a result of repeated deviations from budget deficit targets, the agency said, and high dependence on external financing, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.