The ratings on the United Mexican States are supported by its: Track record of macroeconomic stability and growing economic integration with the U.S. market. Mexico has sustained investor confidence despite the government's failure to legislate structural reforms and tepid economic growth in the past three years. The government has been able to contain the public-sector deficit at about 3% of GDP, partly by resisting pressure to increase spending. Growing integration between Mexico's industrial sector and the U.S. market should facilitate a sustainable economic recovery in the coming years. Improved financial stability. The Bank of Mexico's growing credibility in targeting inflation, which fell to less than 4% in 2003 (the lowest rate in 34 years), augurs well for monetary flexibility. Low
