July 2, 2012 / 8:51 PM / 5 years ago

S&P raises Panama's rating to BBB from BBB-minus

NEW YORK, July 2 (Reuters) - Standard & Poor’s on Monday raised Panama’s sovereign rating to BBB from BBB-minus, citing expectations for strong economic growth in the medium term and higher infrastructure investment.

The rating carries a stable outlook, S&P said in a statement.

“The upgrade reflects our view that Panama’s economic policy flexibility is strengthening as the economy continues to grow, diversify, and gain resilience,” the statement read.

The country’s strong fiscal position means “the government has been able to implement an ambitious public infrastructure investment plan of more than 60 percent of 2011 GDP (including the expansion of the Panama Canal) over the next three years without increasing its fiscal debt burden,” S&P said.

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