Canal expansion gets good rating

PANAMA. Moody's, the U. S. credit rating company, assigned a prospective (P) A2 rating to the senior unsecured debt obligations of the Panama Canal Authority in conjunction with the expansion project, which includes construction of a third set of locks.

The Panama Canal is a unique infrastructure asset that is competitive and unlikely to be replicated. Its competitive advantage is evident in the generally steady growth of transits despite economic downturns, natural disasters and wars since the opening of the canal in 1914.

The favorable operating position of the canal is also evident in the financial performance recorded since the handover in 1999.

In Moody's view, this unique geographic and competitive advantage ensures ACP's long term viability. It thus expects the expansion project to run smoothly and considers the debt obligations the ACP issues a good investment.