New Mexico's Series 2018A Severance Tax Bonds Rated 'AA-' With A Stable Outlook

NEW YORK (S&P Global Ratings) June 11, 2018--S&P Global Ratings assigned its 'AA-' rating to the State of New Mexico's $127.645 million severance tax bonds, series 2018A, and affirmed its 'AA-' rating on the state's $855.075 million parity senior-lien severance tax bonds. At the same time, S&P Global Ratings affirmed its 'A+' rating on New Mexico's $93.68 million subordinate supplemental severance tax bonds outstanding. The outlook on all ratings 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, secure the senior severance tax bonds. The supplemental severance tax bonds are secured by a second lien on pledged revenues, after

...NEW YORK (S&P Global Ratings) June 11, 2018--S&P Global Ratings assigned its '##-' rating to the State of New Mexico's $127.645 million severance tax bonds, series 2018A, and affirmed its '##-' rating on the state's $855.075 million parity senior-lien severance tax bonds. At the same time, S&P Global Ratings affirmed its 'A+' rating on New Mexico's $93.68 million subordinate supplemental severance tax bonds outstanding. The outlook on all ratings 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, secure 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. The ratings reflect our view of New Mexico's: + Recent increase in pledged revenue as a result of higher oil and gas prices and increased production; + Strong 2.28x coverage of new senior-lien maximum...

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