S&P rates Panama bond BBB

S&P said it assigned a BBB foreign-currency senior unsecured debt rating on Panama's $1.2 billion global bond.

The bond matures in 2050.

Panama intends to use the net proceeds for refinancing, repurchase and retirement of domestic and external indebtedness, S&P said, as well as for general budgetary purposes.

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

The ratings reflect 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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