S&P rates Panama notes BBB

S&P said it assigned a BBB rating on the Republic of Panama's domestic senior unsecured notes for up to $750 million.

The notes will mature in six years.

The first settlement, performed on Sept. 29, 2017, has an issued amount of $60 million with a bi-annual coupon of 3% due in 2023.

Panama will use proceeds to finance its budgeted financial needs, S&P said, as well as refinance its debt obligations.

The rating on the notes is the same as the long-term foreign-currency sovereign credit rating on Panama, the agency said.

The long-term foreign currency rating on Panama remains at BBB with a stable outlook.

The ratings reflect Panama's many years of strong GDP growth, continuity in economic policies that have encouraged investment, gradual diversification of the economy and a moderate government debt burden, S&P said.

The stable outlook considers an expectation of continued good economic growth over the next two years, declining fiscal and external deficits and a gradually improving regulatory framework for financial institutions, the agency said.

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