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On September 24, 2008 Moody’s gave the Panama Canal Authority an A2 credit rating. This credit rating classifies the Panama Canal Authority as “a financial entity in the ‘upper-medium grade and subject to low credit risk.’ ”

Alberto Aleman Zubieta, the head of the Panama Canal Authority is quoted as saying that "This announcement is a matter of national pride, because it is the result of the business model we use to manage the canal to ensure its efficiency, safety and profitability".

We at ABPanama believe that this creditworthiness is seen in Moody’s rating as well as in Panama’s receiving the largest per capita foreign investment of any Latin American country. The Panama real estate market benefits from this credit worthiness. The strength of Panama’s economy will likely support and strengthen Panama real estate values for years to come. So far, no sign of a real estate bubble.

Panama

Panama is the narrowest point in the Americas where the Panama Canal connects Atlantic and Pacific. This tropical country has untouched rain forest and pristine beaches on both the Pacific and Caribbean coasts. Panama also has a first world infrastructure with the best roads, airports, ports, and telecommunications in Latin America. Panama is currently enjoying an economic boom and a flood of North American retirees attracted by easy residency laws.

Panama Canal

The Panama Canal is the system of man made channels, locks, dams, and artificial lakes that connect the Pacific Ocean to the Atlantic Ocean across the Isthmus of Panama. Since its completion in 1914 the Panama Canal has allowed shipping to cross the fifty mile wide isthmus at the narrowest part of the Americas. The Panama Canal locks allow ships to enter the system from either ocean and to be raised to the level of artificial Lake Gatun, 26 meters above sea level, to transit central Panama before being lowered to sea level on the other side.

Panama Canal Authority

The Panama Canal Authority (ACP, Autoridad del Canal de Panamá) is the autonomous branch of the Panamanian government that manages the Panama Canal. Set up as a result of the 1977 Panama Canal Treaty ACP took over management of the Panama Canal from the Panama Canal Commission, a joint commission of the United States and Panamanian governments in 1997. ACP is financially autonomous.
The excellent credit rating of the Panama Canal Authority is a credit to Panama. When Panama took over the Panama Canal in 1999 there were doubts as to how well Panama administration would work. Since 1999 Panama Canal efficiency has improved by several measures and a Panama Canal Expansion meant to double capacity and allow much larger boats to pass is underway.
Panama Credit, Panama Business and Panama Real Estate

Panama has the highest foreign investment per capita of any Latin American country as is tied with Chile for the absolute dollar amount. This high rate of investment is reflected in Panama’s construction boom, general economic expansion, and continuing infrastructure improvements.

Foreigners have been attracted to Panama for a decade by its low real estate prices making Panama a retirement haven for North Americans. As Panama’s real estate prices have risen there is talk of a Panama housing bubble. This talk ignores the underlying strength of Panama’s economy. The awarding of an A2 rating to the Panama Canal Authority reflects professional opinion in Panama’s creditworthiness. Thus we can expect Panama real estate to reflect Panama’s economic strength. We believe that Panama real estate will continue to increase in value for many years to come.

If you are interested in Panama real estate come see us at ABPanama. We have been managing real estate portfolios for over 23 years and do business throughout the country.