Another Downgrade for NM

NEW MEXICO’S BOND RATING IS DOWNGRADED BY MOODY’S. THE ALBUQUERQUE JOURNAL REPORTS THE REASONS ARE THE STATE’S PENSION LIABILITIES AND ITS DEEPLY ROOTED SPENDING CHALLENGES. THE JOURNAL SAYS THIS IS A BLOW TO NEW MEXICO’S FISCAL REPUTATION. IT’S ALSO THE STATE’S SECOND DOWNGRADE IN TWO YEARS.

MOODY’S SAYS NEW MEXICO’S CASH RESERVES HAVE BEEN BUILT BACK UP AFTER BEING DEPLETED DURING A RECENT BUDGET SHORTFALL. IT ALSO SAYS GROWING PENSION LIABILITIES, A HIGH ENROLLMENT IN MEDICAID AND OTHER BUDGET ISSUES LED TO THE DOWNGRADING OF NEW MEXICO’S BOND RATING FROM DOUBLE-A-1 TO DOUBLE-A-2.

NOW WE COULD BE HIT WITH HIGHER BORROWING RATES FOR INFRASTRUCTURE PROJECTS. THE CREDIT RATING AGENCY STILL SET NEW MEXICO’S OUTLOOK AS BEING ‘STABLE.”

 

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