The Mexican government's recent fiscal and energy reform proposals could strengthen the country's fiscal flexibility and medium-term growth prospects. We are affirming our 'BBB/A-2' foreign currency and 'A-/A-2' local currency sovereign credit ratings on Mexico. The positive outlook (assigned in March 2013) reflects the greater than one-in-three chance that the government could gain approval of measures to meaningfully improve fiscal room for maneuver and inject more dynamism into the economy. On Oct. 10, 2013, Standard&Poor's Ratings Services affirmed its 'BBB/A-2' foreign currency and 'A-/A-2' local currency sovereign credit ratings on Mexico. The outlook on its long-term credit ratings on Mexico remains positive. The ratings on Mexico reflect its track record of cautious fiscal and monetary policies, which have
