Panama Credit Rating Cut to Junk by Fitch Amid Mine Spat

  • Country had been rated investment grade by Fitch since 2010
  • Bonds drop as firm cites fiscal woes, ‘tense’ social backdrop

The Central American nation’s credit score was cut to BB+ from BBB- on Thursday.

Photographer: Nicolo Filippo Rosso/Bloomberg
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Fitch Ratings stripped Panama of its investment-grade credit rating as the closure of a key copper mine last year added to the country’s fiscal worries and risks undermining growth prospects.

The Central American nation’s credit score was cut to BB+ from BBB- on Thursday, with a stable outlook. That’s in line with Vietnam, Colombia and Serbia.