After ratifying investment grade of sovereign debt for Panama, investment Fitch Ratings recommended to the Panamanian government higher level of prudence in financial management and compliance with the established limits of the fiscal deficiency.
Also, Fitch has affirmed the BBB rating with the stable trend in its latest report for Panama, which was earlier published on its website.
Another two major rating agencies have similar outlook for the country. Standard and Poor’s earlier confirmed BBB Stable. Moody’s previously projected Baa2 Stable rating.
In general, Fitch highlights the dynamic essence and high level of diversification of the Panamanian economy. Their prognosis of annual GDP (Gross Domestic Product) growth for years 2014-2015 is 6%. The report states that such growth rate is the highest in the group of countries with BBB rating and mainly it is supported by the expansion of Panama Canal and ongoing infrastructure and logistic projects.
Moreover, the agency noticed the increasing level of FDI (foreign direct investment) in such areas of economy as tourism and energy production. Further investment in these areas could increase the diversification and improve business climate for the entire republic.
