...S&P Global Ratings has revised its outlook on the State of New Mexico's general obligation (GO) bonds outstanding to stable from negative and affirmed its '##' rating on the bonds. At the same time, S&P Global Ratings has revised its outlook on the state's annual appropriation-secured debt to stable from negative and affirmed its '##-' rating on the debt. The outlook revision reflects New Mexico's return to structural balance following a significant increase in oil and gas production. The state projects general fund reserves to rise to 34% of recurring appropriations at fiscal year-end 2019 on a budgetary basis, up from 18% at fiscal year-end 2018, and 8% at fiscal year-end 2017. In contrast, after a 2017 special legislative budget session, the state legislative finance committee projected that fiscal 2018 would end with only a 0.4% general fund reserve, despite the use of significant one-time budget measures during the most recent oil and gas downturn. While we expect revenue and reserves...
