Fitch lowers Panama rating

The risk rating agency Fitch Ratings lowered Panama’s risk rating from BBB to BBB- on Wednesday, February 3, with a negative outlook, which means that there is still downward pressure on the sovereign rating.

The action reflects the sharp weakening of public finances due to the impact on the economy caused by the coronavirus pandemic.

 An unprecedented contraction in gross domestic product and government revenues led to a material increase in public debt, says the rating agency