On Oct. 24, 2006, Standard&Poor's Ratings Services assigned its 'A' long-term local currency rating to the Bonos de Desarrollo (Bondes D) issued today by the United Mexican States (BBB/Stable/A-3 foreign, A/Stable/A-1 local currency sovereign credit ratings). The bonds, which are expected to raise Mexican peso (MNP) 2 billion, mature in November 2036. The ratings on Mexico are supported by: Growing macroeconomic stability. Low inflation, a flexible exchange rate, and deepening financial markets give Mexico greater ability to adjust to negative shocks during an election year. Growing integration with the U.S. economy, as shown by the tight connection between industrial growth in the U.S. and GDP growth in Mexico, contributes to greater stability. An improving debt profile. Monetary stability
