International classification agency “Fitch Ratings” awarded Panama´s global bonds a rating of BB+. Panama´s Issuer Default Rating for Long Term in Foreign Currency is also BB+ with a Positive Perspective. Panama´s reaction to the economic crisis,
its prospects for next year based on structural changes that have taken place and will continue to take place with the Martinelli government have influenced Panama´s positive classification by the international rating agency. In addition to this, the country´s use of the US Dollar as currency, a very stable and modern international banking system, low inflation rate, high rate of economic growth, has made the country reflect closer to the S&P investment grade formula for said rating status.
These improved international ratings have come with the new Martinelli government. Partly due to the changes being put in place, and most specially the governments decision to address tax reform, even during an economic crisis with the much needed fiscal changes that shall allow to better serve the public debt without actually increasing the Government´s gross debt.
Panama´s national bonds had a risk rating also called EMBI (Emerging Market Bond Index) of 191 points, one of Panama bond´s best scores in the last five years. These points indicate the spread between the risk of US Treasury Bonds and the risk of national bonds, the lower the number assigned the less risk markets expect from the debt instrument of that country and the lower the cost of financing for the country should it need to issue new debt instruments.
With 191 points the international markets have indicated that (Mr. Market) a Wall Street term, all consider it safer to invest in Panama Global Bonds than in Brazilian debt with 215 points or Mexican debt with 212 points.
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