This was coupled with fiscal management undermined by a lack of discipline and transparency. Furthermore, institutions failed to improve in line with other credit aspects and fell short. Moody's Vice President and Senior Analyst Renzo Merino speaks at a press conference on Tuesday in Panama City, Panama Also due to the impact of the pandemic, which exacerbated pre-existing dynamics that led to a rapid and sharp deterioration in fiscal strength. Merino indicated that Panama has had a"negative" Baa3 rating since November 2024, which it shares with Colombia, Paraguay, India, Mauritius, and Romania. He warned that Moody's still maintains a negative outlook, which implies the possibility of a credit rating downgrade if certain elements that support a stable credit profile at that level are not met. He recalled that Panama's Baa3 rating was due precisely to a sharp fiscal deterioration in 2024 and uncertainty about when the debt metric would stabilize.