Panama's ratings on a high

Panamas economy is rocketing, and the government has reopened two of its global bond issues, raising its ratings at the same time. Standard & Poor confirmed that the countrys rating has increased from a BB up to a BB+, which is good news indeed for Panama.

The two global bonds do not reach maturity until 2015 and 2029. The bond that matures in 2015 has been reopened at $235 million which has put the remaining amount overdue at $1.15 billion. Panamas economy has greatly improved, and the government has managed to reduce its arrears by $71.5 million, which is very beneficial to the country. The balance due date has been extended and the safety of the bond has been enhanced thereby bringing up the rating of the bonds. The global bonds are hoped to bring in even higher yields at the end of maturity.

Panama has had a great period of economic growth, increasing approximately 7.8% in the last five years. S&P has not only raised the bond rating of Panama but has also stated that they are looking stable. This is good news for the government of Panama as it reveals the development of their economy.

The real estate market in Panama is one of the few worldwide that is still going up. There is still a large interest from investors looking for a safe haven to ride out the credit crunch. Panama ticks all the right boxes. With condos in the city from under $100,000 and a low cost of living, its still the place to invest. There is also major investment in Panama in the shape of the canal expansion, Howard air force base re-development and the planned gas refinery in Chiriqui.