On Tuesday, rating agency Moody's commented on the Supreme Court of Panama's decision regarding the port concession. The agency stated that this decision does not have a direct impact on Panama's credit profile. However, it warned that the possible initiation of international arbitration by the concessionaire would constitute a contingent liability that could have implications for public finances, a key factor in the sovereign rating. Moody's added that while an adverse ruling against the state could complicate fiscal consolidation, they consider it unlikely that this process will be resolved in the short term. The Supreme Court of Justice of Panama declared the contract between the company Panama Ports, a subsidiary of Hong Kong's Hutchinson, and the Panamanian state unconstitutional, revoking the concession. The government of Panama assured the continuity of operations, stating that operators from APM, a subsidiary of Maersk, will take over once the judicial notifications are completed and until a new tender is held.
