KBRA Affirms AAA Rating, Stable Outlook on the New Mexico Finance Authority State Transportation Revenue Bonds (State Transportation Commission - Senior Lien and Subordinate Lien)

24 Apr 2026 | New York

KBRA affirms the long-term rating of AAA on the New Mexico Finance Authority State Transportation Revenue Bonds (State Transportation Commission - Senior Lien and Subordinate Lien). The Outlook on both liens is Stable.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

Robust coverage of combined MADS from a diverse and stable array of Pledged Revenues.
Rapid debt amortization, with all Senior Lien and Subordinate Lien TRBs to be fully amortized by 2031.
Stringent additional bond provisions that protect the TRB credit from overleveraging.

Credit Challenges

Periodic reauthorization risk associated with FAHP, mitigated by the stability and diversity of the State Revenues component of Pledged Revenues.
Economic dependency of the State on the energy sector which can be volatile, coupled with below national average State wealth and income metrics.

Rating Sensitivities

N/A
While not expected, a pronounced decline in debt service coverage stemming from a severe, sustained declines in Pledged Revenues or overleveraging of the TRB credit.

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Methodology

Public Finance: U.S. Special Tax Revenue Bond Rating Methodology