The rating agency raised the credit rating of Panama to Stable from Positive.

Fitch Ratings has taken the following rating actions on the Issuer Default Ratings (IDRs) and Country Ceiling for Panama:
 
--Foreign currency IDR upgraded to 'BBB' from 'BBB-';
--Local currency IDR upgraded to 'BBB' from 'BBB-';
--Foreign currency short-term IDR affirmed at 'F3';
--Country ceiling upgraded to 'A' from 'A-'.

The rating agency who does little more than a year was the first of the three major agencies in giving the country an investment grade, raised the credit rating of Panama to Stable from Positive.

The ratings basically measure a country's ability to cope with debt repayment, with the 'AAA' best possible score.

Fitch bases its decision on the evolution of the economy, projected growth of 7% for 2011 and 2012 - and the positive dynamics of public debt, which at the end of 2010 represented 43% of gross domestic product (GDP).

Last June, Moody's Investors Service became the last of the three major U.S. ratings agencies to lift Panama into investment grade territory as it cited a significant improvement in the country's fiscal and debt positions.