S&P revises Panama Canal Railway view to negative

S&P said it affirmed its BB- long-term issuer credit and issue-level ratings on Panama Canal Railway Co. and revised the outlook on the issuer credit rating to negative from stable.

The negative outlook reflects that S&P could lower its rating on the issuer in the next 12 months.

Recently, Mediterranean Shipping Co., Panama Canal Railway’s second-largest customer, announced it's moving its operations from the Balboa port to Rodman port, a port that doesn't have rail connectivity since it's located on the opposite side of the Panama Canal. As a result, the railway is losing this customer and has posted significantly reduced container volumes.

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