Mexico's fiscal and external positions have deteriorated. There is the possibility that the government might not address the issues that limit its fiscal flexibility after this year's Congressional elections. We have revised our outlook on Mexico to negative from stable. The 'BBB+/A-2' foreign-currency and 'A+/A-1' local-currency ratings on Mexico are affirmed. (Listen to the related podcast titled, "Mexico: Why Standard&Poor's Revised The Outlook To Negative," dated May 15, 2009.) On May 11, 2009, Standard&Poor's Ratings Services revised its outlook on the United Mexican States to negative from stable. At the same time, Standard&Poor's affirmed its 'BBB+/A-2' foreign-currency and 'A+/A-1' local-currency sovereign credit ratings on Mexico. The 'A+' transfer and convertibility assessment and mxAAA/Stable/-- national
