This past week Standard & Poor raised Panama's credit rating to positive as reported on Bloomberg (see below for link to story).

This puts Panama very close to the rating of 'investment grade'. They reasons for the rosy outlook for Panama aren't a surprise to me or anyone else on the ground watching as Richard Martinelli (President) put his tax reform in action keeping their deficit in check and encouraging signs of continued  economic growth.  

The Panama Canals $5 billion+ expansion which will be ongoing  through 2014 is a big reason for Panama's strong and stable economy. 

One Latin American analyst believes the positive projects for Panama are based in the "fiiscal responsibility and its strong growth prospects that are underpinned by the expansion of the Panama Canal.”

Standard & Poor also released this statement - “Panama could be the next sovereign in Latin America to obtain an investment-grade rating.  The positive outlook reflects our expectation that further fiscal consolidation and continued GDP growth could merit” an increase.

For the complete story GO HERE