Panama has expressed strong disagreement with Fitch Ratings’ decision to lower its credit rating from BBB to BB+.
The Ministry states Fitch’s review overlooks Panama’s solid economy, overly focusing on a major mine’s closure and political matters.
Despite this downgrade, Panama highlights its upbeat economy, noting a 7.3% growth in 2023, low inflation, declining unemployment, and meeting fiscal targets.
The government points out Panama’s key role as a global logistics hub and its diverse economy as strengths Fitch did not consider.
The timing of Fitch’s report, coming just before Panama’s general elections, has also drawn criticism from the government, suggesting it may have been inappropriately timed.
Panama upholds its economic strategies, which the IMF backs.
This has led to robust growth, minimal inflation, and durability amid global trials, including the pandemic.
Even after Fitch’s downgrade, Panama’s ratings with Moody’s and Standard & Poor’s stand firm, reflecting trust in its economic steadiness and growth prospects.
The government remains committed to maintaining its investment grade by continuing effective economic and social policies.
This situation underscores the importance of credit ratings in influencing investor confidence and access to international financial markets.
Panama’s response highlights its determination to protect its economic reputation and ensure continued growth and stability, crucial for its development and the well-being of its citizens.