Standard&Poor's Ratings Services' ratings on Mexico reflect the country's track record of cautious fiscal and monetary policies, which have contributed to low government deficits and inflation, bolstered economic resilience, and contained fiscal and external debt levels. However, the sovereign's limited fiscal flexibility and modest medium-term growth prospects constrain the ratings. About 35% of the country's total budgetary revenues come from the oil sector, which renders the government vulnerable to volatile oil prices and potential declines in oil production over the medium term, especially since the non-oil tax base is low. Since assuming office in December 2012, the administration of President Enrique Peña Nieto has reiterated its commitment to policies that foster macroeconomic stability, improve competitiveness and productivity throughout
