The Ruling On Port Concessions In Panama Does Not Impact The Country's Credit Profile According To Moody's -

(MENAFN- Newsroom Panama) The ratings agency Moody's Ratings said on Tuesday that the cancellation of the concession granted to the Chinese conglomerate CK Hutchison for the operation of two ports near the Panama Canal does not directly affect, at least initially, the country's credit profile. Panama has implemented a series of macroeconomic policies in response to the risk of losing its investment grade rating.

On January 29, Panama's Supreme Court declared the concession contract between the Panamanian state and Panama Ports Company (PPC), a subsidiary of Hong Kong-based CK Hutchison, unconstitutional. PPC had operated the ports of Balboa (Pacific) and Cristóbal (Atlantic) since 1997, both located near the interoceanic canal.

The Panamanian government announced on January 30 that APM Terminals Panama, a subsidiary of the AP Moller-Maersk group, will temporarily assume operation of both ports once PPC's departure is finalized and for the duration of a new,“open and transparent” bidding process for the concession.“The Supreme Court's decision regarding the port concession does not have a direct impact on Panama's credit profile,”

Moody's Ratings stated in a comment sent to EFE. However, the agency, which maintains Panama's investment grade at Baa3 with a negative outlook, notes that“the potential initiation of international arbitration by the (Chinese) concessionaire would constitute a contingent liability that could have implications for public finances, a key factor in the sovereign rating.”

“While an adverse ruling against the State could complicate fiscal consolidation, we consider it unlikely that such a process will be resolved in the short term,” Moody's added. The PPC stated in a press release that the court ruling that takes away its operation of the two ports“lacks legal basis” and that it does not rule out activating“legal and international procedures” in response to this decision.

(PPC) Panama Ports Company Initiates International Arbitration against the Panamanian State

Panama Ports Company, SA (PPC) announced that it initiated an international arbitration process against the Republic of Panama on February 3, 2026, under the current concession contract and in accordance with the Arbitration Rules of the International Chamber of Commerce. Ports operated by Panama Ports Company (PPC) handle almost 40% of Panama's container traffic.

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