...S&P Global Ratings assigned its '##-' rating to the State of New Mexico's approximately $270 million severance tax bonds, series 2022A, and affirmed its '##-' rating on the state's $817 million of parity senior-lien severance tax bonds outstanding. At the same time, S&P Global Ratings affirmed its 'A+' rating on the state's $33.1 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, 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. The 2022A 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 factor in both the strength and stability...
