Bangkok--14 Jan--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AAA' long-term rating, with a stable outlook, to Albuquerque, N.M.'s general obligation (GO) bonds series 2011A. At the same time, Standard & Poor's affirmed its 'AAA' long-term rating and underlying rating (SPUR) on the city's existing GO debt.
The ratings reflect what we view as the city's:
Diversified economic base, which has allowed Albuquerque to successfully manage its operations through previous economic cycles;
- Good wealth and income levels;
- Strong financial management; and
- Rapid amortization of principal and moderate future capital needs.
"The stable outlook reflects our expectation that strong financial management policies and officials' continued proactive and timely budget adjustments to restore structural balance should support stable future reserve levels at or above Albuquerque's reserve policy," said Standard & Poor's credit analyst Sussan Corson. "Should the city reserves fall below its policy, we could lower the ratings," Ms. Corson added.
Although the ongoing economic downturn has resulted in lower revenues and reserves, we believe the city's strong financial management, multiyear planning, and revenue raising flexibility continue to provide support for the 'AAA' rating.
The GO bonds are secured by the city's full faith and credit pledge, payable from unlimited property tax revenues.
Albuquerque, with a population of approximately 535,000, is New Mexico's largest city and main economic center; it is at the core of a metro area that has a population of 858,000--almost half of the state's population.
RELATED CRITERIA AND RESEARCH
USPF Criteria: GO Debt, Oct. 12, 2006
Complete ratings information is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Sussan Corson, New York (1) 212-438-2014
David G Hitchcock, New York (1) 212-438-2022