Moody’s assigns investment-grade ratings to Panama Treasury programs

Moody’s Ratings has assigned investment-grade ratings to the Treasury Bill and Treasury Note programs of the Republic of Panama. The agency assigned a provisional (P)P-3 rating to the Treasury Bill program and a provisional (P)Baa3 rating to the Treasury Note program. These ratings are derived from Panama’s long-term sovereign rating of Baa3.

Previously, Panama’s local public debt market programs did not have individual ratings, despite the sovereign rating. The Ministry of Economy and Finance (MEF) stated that this move aims to attract more international investors, such as investment funds, asset managers, and insurance companies, which are often restricted to purchasing instruments with specific risk ratings.

The MEF noted that international holdings in Treasury Bills and Notes rose 35% between August 2024 and September 2026, increasing from $974 million to $1.312 billion. A more diverse investor base is expected to strengthen auction demand, deepen the local yield curve, and reduce financing costs for the state.