Analyst says Panama Canal expansion won’t hurt bond rating

Analyst says Panama Canal expansion won’t hurt bond rating An analyst for Fitch Ratings recently extolled the potential of an expansion to the Panama Canal, according to a release from the canal authority Monday.
   'If handled appropriately, the Panama Canal expansion project should have a long-term, positive economic impact,” said Fitch analyst Erick Campos, at a newspaper-sponsored forum on the expansion.
   Fitch said the money needed for the canal expansion would not affect Panama’s risk rating as long as fiscal consolidation and strong economic growth continues.
   Campos also said that if it were to assign the Panama Canal Authority a credit rating, it could be higher than BB+, which is Panama's present credit rating.
   In a statement, the authority said it is not obtaining a credit rating and has not hired a credit rating agency.
   The Panama Canal expansion proposal would build a new lane of traffic along the Panama Canal that would double capacity and allow more traffic. The project is estimated to cost $5.25 billion and would be paid entirely by users of the canal through a graduated system of toll increases. According to the Panamanian Constitution, the Panamanian government will not guarantee the authority’s debt for the expansion.