S&P lifts Panama view to positive

S&P said it revised its outlook on Panama to positive from stable and affirmed the BBB/A-2 long- and short-term sovereign credit ratings. The transfer and convertibility assessment is unchanged at AAA.

“Our ratings on Panama reflect its record of high GDP growth, which we expect to remain, that has led to GDP per capita doubling over the last 10 years. They also reflect the sovereign's effective policymaking, its cautious fiscal and debt management, and government actions to improve transparency and supervision of the financial system,” S&P said in a news release.

“The ratings also consider the country's vulnerability to sharp swings in global economic conditions, as it has a small and open economy, and the lack of an independent monetary policy and lender of last resort because it is fully dollarized.”

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