Panama Railway May Sell $100 Million of Bonds

Oct. 25 (Bloomberg) -- Panama Canal Railway Co., the builder of a freight and passenger rail service along the Panama Canal, may sell $100 million of senior secured debt to pay bank and shareholder loans, according to Moody's Investors Service.

Moody's rated the notes, which mature in 2026, provisionally at Baa3, its lowest investment-grade level, according to a statement sent from New York yesterday. The debt has a principal grace period until 2009, the ratings company said.

To contact the reporter on this story: Guillermo Parra-Bernal in Sao Paulo at