Growing macroeconomic stability; An improving debt profile; and Improving external liquidity. A lack of political consensus on economic policies; The government's narrow nonoil tax base; and A weak institutional framework that constrains growth prospects. The ratings on the United Mexican States are supported by: Growing macroeconomic stability. Low inflation, a flexible exchange rate, and deepening financial markets give Mexico greater ability to adjust to negative shocks. Growing integration with the U.S. economy, as shown by the tight connection between industrial growth in the U.S. and GDP growth in Mexico, contributes to greater stability. That, in turn, sustains investor confidence despite little prospect of structural reform over the near term; An improving debt profile. Monetary stability and growing domestic capital markets
