For Immediate Release
March 27, 2013
For more information contact:
John Gasparich, Interim CEO
SANTA FE – Moody’s Investors Service announced today that it was removing the New Mexico Finance Authority (NMFA) from under review for possible downgrade and reaffirming its previous Aa1 senior bond and Aa2 subordinate bond ratings for the Public Project Revolving Fund (PPRF). The action affects $842 million in senior lien obligations and $332 million in subordinate lien obligations. Moody’s placed NMFA bonds under review in the wake of a fraudulent audit discovered in July of 2012.
“This is great news for the local governments and state agencies that depend on low-cost NMFA financing for their capital projects,” said NMFA board chair Nann Winter. The Finance Authority is planning a June bond issue to fund approximately $50 million in various projects throughout New Mexico.
Since the discovery of the fraudulent audit, NMFA has been unable to issue bonds needed to support large infrastructure projects through the PPRF. Moody’s cited “…the successful completion of the fiscal 2011 audit that had an unqualified audit opinion, a lack of theft or embezzlement findings in the State Auditors Special Audit, and the Authority’s positive organizational changes” as basis for lifting its review.
Moody’s also expressed confidence in NMFA’s enduring financial viability with the following statement: “Assignment of the stable outlook reflects our belief that the contributing factors to the rating will remain stable for the long term.”
Download the offical Press Release here.