On July 2, 2007, Standard&Poor's Ratings Services affirmed its 'BBB' long and 'A-3' short-term foreign and 'A' long- and 'A-1' short-term local currency sovereign credit ratings on the United Mexican States. The outlook on the long-term ratings was revised to positive from stable. The change in outlook reflects growing prospects for fiscal reform, steadily improving external liquidity, and a lighter external debt burden. Steps to strengthen the government's tax base, building upon the recent reform of public sector pensions, could strengthen Mexico's public finances and underscore the government's ability to act effectively, leading to an upgrade. The ratings on Mexico are supported by: Growing macroeconomic stability. Low inflation, a flexible exchange rate, and deepening financial markets give Mexico
