LatinNews Daily - 22 October 2020

* International credit ratings agency Moody’s Investors Service has warned that the coronavirus (Covid-19) pandemic will hurt the operations of the Panama Canal, due to the global economic contraction and shifting supply chains. In a new report, Moody's estimates that “tonnage and transits will decrease by 3% and 8%, respectively, during 2020 (under fiscal year analysis). We expect a slow recovery in 2021, but performance will still be below 2019 levels”. The report affirms the 'A1' debt rating assigned to the Panama Canal Authority (ACP) but changed the rating outlook from 'stable' to 'negative'. The move follows the recent outlook change on the rating of the Panamanian government. However, Moody's notes that despite the “pandemic and US-China trade tensions, the ACP's operational and financial performance has been strong, supported by the recent expansion and a new tariff scheme”, and highlights that the ACP's credit quality “is also underpinned by the robust institutional framework, corporate governance, and international treaties that ensure its operation without interference”.

End of preview - This article contains approximately 177 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