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.”