Fitch Ratings on Oct. 16 upgraded Banco Panamá SA's long-term national rating to A(pan) from A-(pan), while affirming the short-term national rating at F1(pan).

The ratings upgrade reflects the bank's lower growth appetite, along with the strengthening of its financial profile as seen in its upward profitability indicators as well as a reduction in its active and passive concentrations, anchoring its good loan quality and capitalization, Fitch said.

Banco Panamá's modest but growing competitive position in the Panamanian financial market highly influences its ratings, Fitch added. The bank's funding structure based on high-cost deposits also factors into the ratings.

Fitch views the bank as having a prudent and effective management, which is in line with industry standards.

The outlook on the long-term rating is stable.