This report supplements our research update "Mexico Long-Term Foreign Currency Rating Raised To 'BBB+', Local Currency Rating Raised To 'A'; Outlook Is Stable," published on Dec. 19, 2013. To provide the most current information, we may cite more recent data than that stated in the previous publication. These differences have been determined not to be sufficiently significant to affect the rating and our main conclusions. The ratings on Mexico reflect its track record of cautious fiscal and monetary policies, which has contributed to low government deficits and inflation, bolstered economic resiliency, and contained fiscal and external debt levels. However, the sovereign's limited fiscal flexibility and moderate medium-term growth prospects have constrained the ratings. About one-third of the country's total budgetary
