Summary: New Mexico Finance Authority; State Revolving Funds/Pools; Water/Sewer

S&P Global Ratings assigned its 'AAA' rating to the New Mexico Finance Authority's (NMFA) series 2020C-1&2 subordinate-lien public project revolving fund (PPRF) revenue and refunding bonds. S&P Global Ratings also affirmed its 'AAA' rating on the authority's previously issued senior- and subordinate-lien bonds. Bond proceeds will reimburse funds for 33 projects made under the PPRF program. Because we view securitizations backed by pools of public-sector assets as highly sensitive to country risk, the rating on the securitization is capped at two notches above the sovereign. However, no specific sovereign default stress is applied, given the U.S. sovereign rating is 'AA+'. The outlook is stable. Following mobility restrictions and closure of large segments of the economy as a result of COVID-19

...S&P Global Ratings assigned its '###' rating to the New Mexico Finance Authority's (NMFA) series 2020C-1&2 subordinate-lien public project revolving fund (PPRF) revenue and refunding bonds. S&P Global Ratings also affirmed its '###' rating on the authority's previously issued senior- and subordinate-lien bonds. Bond proceeds will reimburse funds for 33 projects made under the PPRF program. Because we view securitizations backed by pools of public-sector assets as highly sensitive to country risk, the rating on the securitization is capped at two notches above the sovereign. However, no specific sovereign default stress is applied, given the U.S. sovereign rating is '##+'. The outlook is stable. Following mobility restrictions and closure of large segments of the economy as a result of COVID-19 and the swift onset of recession, all of S&P Global Ratings' sector outlooks in U.S. public finance are now negative. For long-term municipal pools, the majority of the underlying cash flows that...

Summary