RATING SUPPORTED BY SERVICE SECTOR.In its annual report on Panama, released Feb. 27, Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. said its Baa1 investment-grade rating for the foreign currency country ceiling and stable rating outlook are supported by a service sector that provides 80% of the nation's GDP GDP (guanosine diphosphate): see guanine. . The sector includes the Panama Canal Panama Canal, waterway across the Isthmus of Panama, connecting the Atlantic (by way of the Caribbean Sea) and Pacific oceans, built by the United States (1904–14) on territory leased from the republic of Panama. , the Colon Free Trade Zone, and Panama's international banking sector. The only country in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. with split ratings, Panama has a rating for government bonds that is non-investment grade Ba1, also with a stable outlook. "The service sector provides a steady and reliable source of foreign income and has helped shield the Panamanian economy from the volatility typical of other Latin American countries," said Moody's V.P. Mauro Leos, author of the report. "Panama's proficient debt management has also reduced the outstanding debt stock and improved the debt profile through various debt swaps and buyback operations." Passage last year of the "Fiscal Responsibility Law" (FRL FRL - Frame Representation Language. MIT. ["The FRL Manual", R. Roberts et al, AI Memo 409, MIT AI Lab, 1977]. ) should help establish an improved fiscal stance over time, says the Moody's report. Copyright 2003 |
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