The ratings on the United Mexican States (Mexico) reflect the government's broad-based commitment to stable macroeconomic policy, the absence of economic imbalances, moderate fiscal and external debt burdens amid limited fiscal flexibility, and modest medium-term growth prospects. The government's track record of and commitment to macroeconomic stability—as its prudent macroeconomic management, supported by political parties at the national level, demonstrates—supports the ratings. The political landscape, increasingly dominated by candidates maneuvering to prepare for the July 2012 presidential elections, limits the advancement of legislation in Congress until the next administration. This includes measures that could facilitate faster rates of growth as well as tax and oil reform. We expect that Mexico's fiscal debt and deficit indicators will remain fairly steady. Net
