S&P Lifts Panama

S&P has raised Panama’s rating to BBB from BBB minus, it says. It expects Panama’s GDP growth to remain strong in the medium term, thanks to diversified investment, and double-digit revenue growth since 2010 has allowed the government to increase infrastructure investment without increasing its debt burden. “Panama’s economic policy flexibility is strengthening as the economy continues to grow, diversify, and gain resilience,” the agency says. S&P expects GDP should expand 6% this year and by about 4% annually through 2015. The outlook on is stable.