Weekly Report - 19 November 2009 (WR-09-46)

PANAMA | Bonds. Panama has sold US$1bn of 10-year dollar bonds in overseas markets after a boost to the country's debt-rating outlook put it on the cusp of investment grade. On 9 November the international ratings agency, Standard & Poor's (S&P), raised Panama's credit rating (BB+) to a positive from stable outlook, putting the country on notice for a possible increase to investment grade. S&P positively cited recent tax reforms which are expected to boost government revenues by about 0.75% of GDP, noting that, for the first time, the reforms extend Panama's tax reach into the business activities of the Colón Free Zone, "a highly politically controversial issue" for Panama. S&P also said that the expansion of the Panama Canal, and an improving international economic scenario, should also help support the country's growth prospects.

End of preview - This article contains approximately 257 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial