Mexico's established track record of balanced macroeconomic management is expected to keep fiscal and external debt burdens fairly steady. The government has limited fiscal flexibility, which stems from a low non-oil tax base and budgetary dependence on oil revenue, as oil production will likely decline further over the coming years. Costs associated with the increased level of drug-related violence are difficult to quantify but likely pose an opportunity cost for and hampers more robust growth and investment. We have affirmed all of the ratings on the sovereign, including the 'BBB/A-3' foreign-currency and 'A/A-1' local-currency sovereign credit ratings On Dec. 17, 2010, Standard&Poor's Ratings Services affirmed its 'BBB/A-3' foreign-currency and 'A/A-1' local-currency sovereign credit ratings on the United Mexican
