With the passing of the latest tax reform all kinds of new benefits are starting to flow towards Panama, and this one was the most important. Fitch is the first to rate Panama as investment grade and I am sure the rest will follow shortly. Say, weren't these the same ratings guys that gave investment grade to financing loan packages that caused the housing bubble. Oh, that was last year. They now have their act together.
The U.S. will soon be downgraded and who knows, withing a few years it will be safer to invest in Panama than the U.S.. Heck, it may already be.From Newsweek
Panama has earned an investment-grade credit rating from Fitch Ratings for the first time.
Fitch is raising Panama by one notch to "BBB-minus."
Fitch said Tuesday that this reflects a sustained improvement in public finances in the Central American nation.
It also cited recent tax reforms and the country's economic resilience amid the global financial crisis.
The upgrade is a victory for conservative President Ricardo Martinelli, who has pushed two tax reforms through Congress since taking office last year.