Bangkok--13 Jul--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'SP-1+' short-term rating to New Mexico's series 2010 tax and revenue anticipation notes (TRANs).
"The rating reflects our view of the state's projections of total general fund investment balances as well as gross general fund revenue in fiscal 2011 that provides strong debt service coverage at maturity," said Standard & Poor's credit analyst Sussan Corson.
The ratings also reflect New Mexico's ('AA+' general obligation debt rating and stable outlook) early segregation of sufficient funds to repay the notes; executive authority to reduce appropriations in fiscal 2011 to mitigate any potential revenue declines; and very strong general credit characteristics.
The series 2010 TRANs, which mature June 30, 2011, are payable from first money, consisting of tax receipts and other revenues, attributable to the general fund in fiscal 2011. Authorizing legislation allows the state to issue TRANs in an amount not to exceed 50% of the corresponding fiscal year's projected revenues to the general fund. The series 2010 TRANs represent 4% of projected fiscal 2011 general fund cash receipts. Officials will use the notes to fund the state's fiscal year general fund cash flow needs.
New Mexico collects pledged revenues--including sales, personal income, corporate income, and mineral production taxes, as well as royalties, rents, and investment income--for the general fund appropriation account.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Short-Term Debt, June 15, 2007
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Sussan Corson, New York (1) 212-438-2014
Ian Carroll, San Francisco (1) 415-371-5060
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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Americas Customer Service: (1) 212-438-7280
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