CREDIT-RATING agency, Moody's Investors Service, has upgraded the 20-year US$450 million Senior Unsecured Bonds issued by the Panama Canal Authority (ACP) to A1 from A2, with a stable outlook, based on the waterway's strong performance since the expansion's inauguration
CREDIT-RATING agency, Moody's Investors Service, has upgraded the 20-year US$450 million Senior Unsecured Bonds issued by the Panama Canal Authority (ACP) to A1 from A2, with a stable outlook, based on the waterway's strong performance since the expansion's inauguration. Moody's noted that the expanded canal has increased overall tonnage and attracted new market segments, contributing to the waterway's strong performance. According to Moody's, 'stronger cash flow generation coupled with a relatively low leverage has resulted in very solid financial metrics.'
Panama Canal vice president for Finance, Francisco J Miguez, said: 'This upgrade in the long-term rating is the result of the Panama Canal's financial strength, its proven track record of institutional independence and successful governance that continue to be key to the waterway's success.'
In August 2018, Fitch Ratings affirmed the ACP 'A' investment grade rating with a stable outlook for its long-term issuer default rating and its senior unsecured notes. In July 2018, Standard & Poor's (S&P) Global Ratings improved the Canal's outlook from 'stable' to 'positive,' and also affirmed its 'A-' rating of the waterway.
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