S&P Global Ratings affirmed its 'AA' rating on the State of New Mexico's $505.3 million of general obligation (GO) debt outstanding. The outlook is stable. The state's full faith and credit pledge, including an unlimited ad valorem tax on taxable property, secures the GO bonds. New Mexico annually levies property taxes in amounts sufficient to provide a reasonable cash surplus in excess of the next year's debt service payments on its GO debt to provide protection against delinquent tax payments. Our rating on the state reflects per capita income below national levels and an economy that reflects both the stabilizing presence of large federal employment, but also a heavy dependence on oil and gas-related revenue, as well as low debt
