S&P upgrades Panama

S&P said it raised the long-term sovereign credit ratings on Panama to BBB+ from BBB and affirmed the A-2 short-term sovereign credit ratings.

Many years of rapid GDP growth and economic diversification have boosted per capita income and helped strengthen the resilience of Panama's small, open economy, S&P said.

The outlook is stable, based on an expectation of continuity in key economic policies after upcoming national elections, along with continued strong GDP growth and stable public finances and external liquidity, the agency said.

A combination of rising prosperity and gradual economic diversification, including the growth of mining, should increase Panama's economic resilience against external shocks, S&P said.

The agency said it expects that continued economic growth and moderate fiscal policies will help stabilize public finances and the country's external liquidity position in the coming three years.

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