S&P Global adjusted their ranking on Panamanian infrastructure, including the Panama Canal Authority, from ‘stable’ to ‘positive’
Panama City, Panama, July 5, 2018 – Two years after the inauguration of the Expanded Panama Canal, Standard & Poor’s (S&P) Global Ratings revised its outlook on the Panama Canal from ‘stable’ to ‘positive’ – demonstrating the global impact of the historic waterway. The rating agency also affirmed its ‘A-‘ rating for the Panama Canal, ranking the ACP two notches above that of the sovereign foreign currency rating.
S&P Global Ratings stated that they are revising Panama Canal’s outlook due to the waterway’s “intrinsic credit factors, sensitivity to country risk, and liquidity cushion.”
The Panama Canal’s outlook indicates the rating agency’s expectation that it will generate relatively stable annual earnings before interest, taxes, depreciation, and amortization (EBITDA) due to transit growth, made possible by favorable trends in world trade commerce and the consolidations of the Neopanamax Locks’ operations.
“This revision in S&P Global Ratings’ outlook reflects the Panama Canal’s solid financial and operational performance,” said Panama Canal Executive Vice President for Finance and Administration, Francisco J. Miguez. “This is the direct result of our commitment to efficiency, productivity and performance – overcoming the challenge of growing in an increasingly competitive market.”
About the Panama Canal Authority
The Panama Canal is run by an autonomous agency of the Government of Panama in charge of managing, operating and maintaining the Panama Canal. The operation of the Panama Canal Authority (ACP) is based on its organic law and the regulations approved by its Board of Directors. For more information, please refer to the ACP’s website: http://www.pancanal.com or follow us on Twitter @thepanamacanal .
About the Panama Canal Expansion
The Panama Canal Expansion is the largest enhancement project since the Canal’s opening in 1914. Considered and analyzed for a decade with more than 100 studies, the Expanded Canal provides the world’s shippers, retailers, manufacturers and consumers with greater shipping options, better maritime service, enhanced logistics and supply-chain reliability. The Expansion included the construction of a new set of locks on the Atlantic and Pacific sides of the waterway, creating a third lane of traffic and doubling the cargo capacity of the waterway. While the expanded locks are 70 feet wider and 18 feet deeper than those in the original Canal, they use less water due to water-savings basins that recycle 60 percent of the water used per transit. In line with its commitment to customer service, the Panama Canal will continue to provide the world with value for another century and beyond.