Moody’s Reaffirms Panama Canal’s A2 Long-Term Rating with Stable Outlook

Date: 14-DEC-2018

Panama City, Panama, December 14, 2018 — Moody’s Investors Service reaffirmed the Panama Canal Authority’s
(ACP) A2 long-term rating with a stable outlook, based on its distinctive
position as an infrastructure asset with a unique geographic advantage and
business model, and its strong historical operational and financial

According to Moody’s, the ACP’s strong financial performance has resulted
in better than anticipated financial metrics, driven by the successful
operations of the Expanded Panama Canal. The credit rating agency noted the
Canal’s strong operating track record and robust growth after the Expansion.
Factoring into its decision, Moody’s cited “the Canal’s unique role in
waterborne trade especially for the container cargo Northeast Asia-US East
Coast route and its ensured long-term viability as a result of the Expansion
Program’s completion.”

“Once again the credit rating agency confirms the great operational and
financial strength of the Canal and recognizes that the robust institutional
structure and governance continue to be key to the success of the Panama Canal
Authority,” said Panama Canal Vice President of Finance Francisco J.

Moody’s also takes into account the clear legal framework that creates a
reliable and stable operating environment, “as well as the ACP’s long
track record of very strong operating and financial performance that has
withstood financial downturns and kept pace with global seaborne trade

The credit rating agency noted that the Canal has demonstrated resiliency in
times of economic downturn. Moody’s highlighted that “despite macroeconomic
factors, such as sluggish economic global performance, tariff disputes, and a
low demand for raw materials in Latin America and Asia, that could negatively
impact the canal’s operations, Moody’s estimates tonnage to continue increasing
during 2019.”

In August, Fitch Ratings affirmed the ACP ‘A’ investment grade rating with a
stable outlook for its long-term issuer default rating and its senior unsecured
notes. In July, Standard & Poor’s (S&P) Global Ratings improved the
Canal’s outlook from ‘stable’ to ‘positive,’ and also affirmed its ‘A-‘ rating
of the waterway.

About the Panama Canal Authority (ACP)
The Panama Canal Authority (ACP) is an autonomous legal entity of the Republic of Panama in charge of the operation, administration, management, preservation, maintenance, and modernization of the Panama Canal, as well as its activities and related services, so that the Canal may operate in a safe, continuous, efficient manner. For more information, please refer to the ACP’s website: or follow us on Twitter @thepanamacanal.