Panama not likely to get Investment Grade in 2009 by S&P
Thursday, November 27, 2008 16:55
It has emerged that Panama probably won’t get the Investment Grade from S&P in 2009, due to various contributing factors. The country has significantly increased in recent years to obtain the BB+ rating. Panama is accompanied by Colombia and El Salvador; they are still behind the top four in Latin America. Chile has the highest rating of A+, followed by Mexico with BBB+ and Brazil and Peru with BBB-.
Reasons for the apparent development are based on the fact that although Panama has seen an institutional growth and development, as well as the strengthening of the economy, essentially the political administration of the country is lacking the stability required for the increased rating. Coupled with this is the increased debt taken on with the Canal expansion project, as well as the possibility of a new government in 2009.
The analysts have claimed that it will be a period of waiting and watching to see what the developments reveal within Panama before the country will reach the investment grade.
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