S&P Global Ratings revised its outlook on Panama to positive from stable, saying it could raise the country's rating over the next two years if ongoing high economic growth further strengthens its economic resilience and public finances and external liquidity position remain stable.

The rating agency said rising prosperity, further economic diversification, and effective oversight of the financial system should further strengthen the country's economic resilience. It expects the country's pro-growth economic policies to continue after national elections due in May 2019.

S&P affirmed Panama's long- and short-term sovereign credit ratings at BBB/A-2, based on the country's record of high GDP growth, effective policy-making, cautious fiscal and debt management, and actions to improve oversight of the financial system.

Panama's economic growth is expected to be higher than most countries at its level of economic development in 2018. The country's GDP growth is projected to be 4.5% in 2018 and is expected to increase to about 5.5% on average over the next three years, the rating agency said.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.