On Aug. 6, 2007, Standard&Poor's Ratings Services raised its Banking Industry Country Risk Assessment (BICRA) on United Mexican States (Mexico) to Group 4 from Group 5. This action reflects the relatively stable Mexican economic and monetary environment, the low levels of indebtedness of enterprises and households, the expansion and maturation of Mexico's capital markets, and the sustained improvement in the financial performance of the banking sector as a whole. The improvement in banking industry country risk is a positive element that underpins bank credit ratings. This action alone will not lead to upgrades of banks in Mexico; combined with positive trends in other factors specific to individual banks, however, it could contribute to a positive change in bank
