zoomImage Courtesy: Panama Canal Authority

The Panama Canal Authority (ACP) has been assigned an A2 rating for its business model, geographic advantage, and strong operational and financial performance, the ACP cited a report issued by Moody’s rating agency.

In its report, the credit rating agency noted that one of the ACP’s largest financial strengths is its “clear legal and institutional framework,” which supports a reliable and stable operating environment for the entity moving forward. They also noted that the ACP’s assigned rating is just above Panama’s country ceiling of A3, reflecting the Canal’s long history of operating in an environment free of political interference.

Additionally, Moody’s informed that it expects this model to continue due to ACP’s “solid corporate governance, as well as rules that ensure the maintenance of a prudent business management.”

Moody’s attributed its rating to the ACP’s financial health further insulating the ACP from risk and the fluctuations of the local market, according to the authority.

The rating comes six months after the inauguration of the Expanded Panama Canal. Since then, more than 500 vessels have transited the new waterway, including container ships, liquefied petroleum gas (LPG) carriers, vehicle carriers, tankers and liquefied natural gas (LNG) carriers.