On April 27, 2006, Standard&Poor's Ratings Services affirmed its 'BBB' long and 'A-3' short-term foreign currency sovereign credit ratings on the United Mexican States. Standard&Poor's also confirmed its 'A' long- and 'A-1' short-term local currency sovereign credit ratings on Mexico. The outlook on the long-term ratings is stable. 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. That, in turn, sustains investor confidence despite little
