Fitch reduces Panama's debt to “junk” after the closure of a large copper mine and the Canal's water crisis

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Fitch reduces Panama's debt to “junk” after the closure of a large copper mine and the Canal's water crisis

The closure of a major copper mine, as well as the increase in public spending during the Covid-19 pandemic, are taking a toll on Panama. The analysis firm Fitch Ratings announced on Thursday that it cut the score of its sovereign bonds one step, from BBB- to BB+. The next government, to be elected in the May elections, will have a restricted margin in its public finances, the rating agency warned. Continue reading