SANTA FE (AP) – A credit ratings agency is reaffirming a top grade for New Mexico general obligation bonds as the state grapples with declining revenues from the oil and natural gas industry.
The New Mexico Department of Finance and Administration on Thursday announced the triple-A bond rating from Moody’s Investor Services.
Moody’s says the rating reflects the state’s conservative financial management practices as well as relatively stable and adequate reserves. New Mexico expects to draw down it general fund reserves by more than $350 million during the fiscal year ending in June to help balance general fund revenues and spending amid weak energy prices.
The withdrawals are expected to leave reserves at about 5.6 percent of general fund spending. That is down from 11.6 percent at the start of the fiscal year.