LatinNews Daily - 10 February 2020

* International credit ratings agency Fitch Ratings has downgraded Panama’s rating outlook from 'stable' to 'negative'. In a press release Fitch attributed its revision to, among other things, “a marked deterioration in fiscal deficits and a significant increase of the government’s debt burden, related to accumulation of arrears by previous administration and higher fiscal deficit targets under the modified Fiscal Responsibility Law”. Fitch estimates Panama’s non-financial public sector (NFPS) fiscal deficit was 3.1% of GDP while gross government debt rose to 46.4% of GDP in 2019, from 39.4% in 2018. Consolidated general government debt (net of the social security government debt holdings) increased to 40.2% in 2019 from 34.7% in 2018. Fitch projects the consolidated general government debt burden will continue to rise, albeit gradually over the forecast period and reach 42.5% by 2021.

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