Panama’s Debt Downgraded by S&P to Lowest Investment Grade
- Rating cut reflects higher vulnerability to fiscal challenges
- Country’s bonds have dropped as traders lament budget gap
Panama City skyline in Panama.
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Panama’s credit score was cut by S&P Global Ratings, putting the Central American nation a step closer to losing its investment-grade status.
S&P lowered Panama by a notch to BBB-, on par with Mexico and Romania, citing rising government debt levels made worst by sluggish revenue. The outlook is stable.