DALLAS -- New Mexico's State Transportation Commission plans to issue $75.2 million of subordinate-lien revenue bonds through the New Mexico Finance Authority Feb. 26 to fund transportation projects around the state.
Following this issuance, the commission will have about $893 million of senior lien and $623 million of subordinate lien revenue bonds outstanding.
The senior-lien and subordinate-lien bonds carry ratings of AA from Standard & Poor's. Moody's Investors Service rates the senior-lien bonds Aa1 and the subordinate-lien bonds Aa2. The outlooks are stable.
"The Aa1 and Aa2 ratings reflect ample coverage of debt service by pledged revenues and strong additional bonds tests, balanced against stagnant state revenues, reauthorization risk for federal revenues, and significant variable rate and swap exposure at the subordinate level," said Kenneth Kurtz, ?senior vice president?for Moody's Public Finance Group.
The bonds are secured by state road and highway revenues, consisting primarily of gasoline and diesel fuel taxes, as well as federal highway aid.
The department has no further issues planned, according to Moody's.
In January, the New Mexico Department of Transportation completed its annual Financial and Compliance Audit and received no audit findings for the 2013 fiscal year, the first time NMDOT has received a perfect audit.
"This accomplishment speaks volumes on the accuracy and integrity of the department's financial information, accounting practices and internal controls," NMDOT officials said. "The results of the audit are also a reflection of the department's commitment to the effective and efficient reporting, management and use of public funds."
The NMFA, through which the bonds will be issued, was embroiled in a fake audit scandal in 2013 that halted bond issuance for most of the year. The NMFA has since returned to the bond market under a new audit.