...S&P Global Ratings assigned its '##-' rating to the State of New Mexico's $125 million severance tax bonds, series 2020A, and affirmed its '##-' rating on the state's parity senior-lien severance tax bonds. At the same time, S&P Global Ratings affirmed its 'A+' rating on New Mexico's 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 2020A bond proceeds will fund various capital improvement projects in the state. We rate the bonds under our "Priority-Lien Tax Revenue Debt" criteria (published Oct. 22, 2018), which factors in both the strength and stability of the pledged revenues as well as the general credit...
