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Two striking changes have occurred since then: short-term foreign debt levels are more manageable and foreign-exchange reserves higher.
The agency said Mexico had reduced foreign debt levels and that the economy continues to benefit from deepening economic and financial integration with the United States and from a political consensus on the need for fiscal discipline.
The downgrade followed a similar move by Fitch Ratings, which cut its rating for New Zealand on Thursday and also singled out the country's high foreign debt levels as a cause for concern.
To facilitate this, Mr García announced this month that he would seek to cut Peru's overall foreign-debt level to just 10% of GDP.
The increased domestic consumption helped push foreign debt to record levels.
Probably under pressure from Mr Nourbakhsh, the president has promised to reduce Iran's domestic debt burden next year, in order to free up the banks' resources for cash-starved private companies.One option would be to borrow abroad, but the government is proud of having reduced Iran's foreign debt to its lowest level for a decade.
As recently as this week, Standard & Poor's said Australia's foreign debt had reached "extreme" levels.
Indonesia has a much lower level of foreign debt relative to income now than it did in the 1990s.
According to Tim Condon of ING, the windfall has produced the highest level of foreign debt relative to reserves in Asia.
Instead, the country ended up with daunting levels of foreign debt.
Given questions about the strength of this expansion, the rapidly growing trade deficit and enormous levels of foreign debt, ignoring the high dollar will only make matters worse in a year or two.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com