KBRA Assigns AAA Rating, Stable Outlook to the New Mexico Finance Authority State Transportation Revenue Refunding Bonds (State Transportation Commission - Senior Lien), Series 2024A
May 23 2024 - 5:02PM
Business Wire
KBRA has assigned a long-term rating of AAA to the New Mexico
Finance Authority State Transportation Revenue Refunding Bonds
(State Transportation Commission - Senior Lien), Series 2024.
Concurrently, KBRA affirms the long-term rating of AAA on both
outstanding parity Senior Lien State Transportation Revenue Bonds,
and outstanding Subordinate Lien State Transportation Revenue
Bonds. The Outlook on all bonds is Stable.
Key Credit Considerations
The rating was assigned because of the following key credit
considerations:
Credit Positives
- Robust pro-forma coverage of maximum annual debt service from a
diverse and stable array of Pledged Revenues.
- All Senior Lien and Subordinate Lien bonds are to be fully
amortized by 2031.
- The Indenture’s strict Additional Bonds Test protects against
overleveraging. Furthermore, other than refunding issuance, no
additional Senior Lien or Subordinate Lien debt issuance is
authorized under the Act.
Credit Challenges
- The bonds are subject to the periodic risk of
non-reauthorization of FAHP funding. This risk is mitigated,
however, by the stability and diversity of the State Revenues
component of Pledged Revenues, and by the federal transportation
contract authority distributed to state departments of
transportation through formula programs.
- The state’s economic dependence upon the energy sector may
present resource base vulnerabilities over the long term.
- State wealth and income metrics are below the national
average.
Rating Sensitivities
For Upgrade
For Downgrade
- Pronounced decline in the collection of Pledged Revenues and
resultant coverage levels.
To access rating and relevant documents, click here.
Methodologies
- Public Finance: U.S. Special Tax Revenue Bond Rating
Methodology
- ESG Global Rating Methodology
Disclosures
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1004455
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Analytical
Linda Vanderperre, Senior Director (Lead Analyst) +1
646-731-2482 linda.vanderperre@kbra.com
Jonathan Harris, Senior Director +1 646-731-1235
jonathan.harris@kbra.com
Karen Daly, Senior Managing Director (Rating Committee Chair) +1
646-731-2347 karen.daly@kbra.com
Business Development
William Baneky, Managing Director +1 646-731-2409
william.baneky@kbra.com
James Kissane, Senior Director +1 646-731-2380
james.kissane@kbra.com