Panama's debt downgraded by S&P to lowest investment grade
This article is a summary of reporting by Bloomberg. Originally published November 26, 2024.
S&P Global Ratings lowered Panama's sovereign credit rating to the lowest tier of investment grade following the economic disruptions triggered by the Cobre Panamá mine closure. The agency warned of rising government debt burdens, reduced economic growth, and potential international arbitration liabilities that could equal as much as 20% of Panama's GDP. The downgrade mirrored similar actions by Fitch Ratings, which previously cut the country to junk status. Higher borrowing costs have since complicated the Panamanian government's budget execution and public investment plans.
AI Summary
S&P downgraded Panama's sovereign credit rating to the lowest tier of investment grade, citing fiscal strain and liabilities tied to the mine closure.
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