Fitch: Panama unaffected

Fitch Ratings said that while the approval of the Panama Canal expansion referendum could yield positive results for Panama in the long term in terms of higher external and fiscal receipts and GDP growth prospects, the referendum itself will not have an immediate impact on Panama's sovereign ratings because uncertainties remain about debt financing, future revenues from tolls and Panama's ongoing fiscal consolidation.

Panamanians voted on Sunday to expand the Panama Canal. With about 96% of the votes counted, 78% of voters approved the referendum. While Fitch said it views the approval of the canal expansion as a favorable development for maintaining the country's competitiveness, the project is not without risks. As such, Fitch will closely monitor the project's impact on debt levels and GDP growth.

© 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.