Panama City, Panama, March 12, 2019 — Moody’s Investors Service
upgraded the 20-year $450 million Senior Unsecured Bonds issued by the Panama
Canal Authority (ACP) to A1 from A2, with a stable outlook, based on the
waterway’s strong performance since the expansion’s inauguration.

Moody’s noted that the Expanded Canal has increased overall tonnage and
attracted new market segments, contributing to the waterway’s strong
performance. According to Moody’s, “stronger cash flow generation coupled
with a relatively low leverage has resulted in very solid financial

“This upgrade in the long-term rating is the result of the Panama Canal’s
financial strength, its proven track record of institutional independence and
successful governance that continue to be key to the waterway’s success,”
said Panama Canal Vice President for Finance Francisco J. Miguez.

The credit rating agency noted that the rating “is one-notch above the A2
sovereign ceiling of Panama and three notches above the rating of the
Government of Panama (Baa1 stable), implying low risk of moratorium
restrictions and capturing the Canal’s very strong credit profile with a
substantial international component of its revenues.”

In August 2018, 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 2018, 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.