S&P Preps Panama for Upgrade

S&P has revised the outlook on Panama’s BBB minus rating to positive from stable, setting the stage for an upgrade over the next year or so should the country’s economy continue to perform well. Between 2005 and 2010, Panama’s GDP grew on average by 8%, with Fitch forecasting 7.5% for this year and an average of 5.5% over the 2012-2015 period. “In our view, higher growth, along with rising investment in Panama’s infrastructure could lead to faster-than-expected improvement in the sovereign’s financial profile and long-term economic resilience,” says S&P credit analyst Roberto Sifon Arevalo.