...NEW YORK (S&P Global Ratings) July 11, 2017--S&P Global Ratings assigned its '##-' rating to the State of New Mexico's $75.795 million severance tax bonds, series 2017A, and affirmed its '##-' rating on the state's $582.2 million parity senior-lien severance tax bonds. At the same time, S&P Global Ratings also affirmed its 'A+' rating on New Mexico's $93.7 million subordinate supplemental severance tax bonds outstanding. The outlook is stable. A lien on money deposited into the severance tax bonding fund, including net tax receipts generated from natural gas, oil, and other severed natural resources in New Mexico, secures the senior severance tax bonds. The supplemental severance tax bonds are secured by a second lien on pledged revenues, after payment of senior debt service. "In our view, strong and stabilized debt service coverage is a key credit strength supporting the rating, after a prior period of pledged revenue decline" said S&P Global Ratings credit analyst David Hitchcock. The...
