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MOODY'S ISSUES ANNUAL REPORT ON PANAMA

Info-Prod Research (Middle East), August, 2007

In its annual report on Panama, Moody'sInvestors Service says the country's Ba1 foreign currency government bondrating and stable outlook are supported by a dynamic service sector thathas served to shield the economy from the volatility observed in othercountries in the region, and by a favorable debt profile.

Panama's A3 foreign currency country ceiling for bonds assesses the riskof a disruption in the smooth functioning of the dollar payments system."Given dollarization's long tradition in Panama, Moody's sees limitedrisk for such disruption," said Moody's Vice President Alessandra Alecci,author of the report. "In addition, because of dollarization, theforeign-currency country bond ceiling reflects the lack of transfer risk." With economic activity booming, she said,...

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