On Jan. 31, 2005, Standard&Poor's Ratings Services raised its long-term foreign currency sovereign credit rating on the United Mexican States to 'BBB' from 'BBB-'. Standard&Poor's also raised its long-term local currency sovereign credit rating on Mexico to 'A' from 'A-' and its short-term local currency sovereign credit rating to 'A-1' from 'A-2'. The short-term foreign currency rating remains 'A-3'. The outlook on the long-term ratings is stable. The upgrade reflects gradually increasing macroeconomic stability attributable to steady improvement in external liquidity and deepening domestic financial markets, resulting in greater resilience to potential negative shocks. An improving debt profile has reduced the risk of volatility in fiscal performance, with interest payments likely to decline gradually to less
