DALLAS — Standard & Poor’s on Wednesday placed the New Mexico Finance Authority’s AAA rating on watch list for a possible downgrade in the wake of disclosures that the authority’s most recent audit was phony.

“While the rating on the bonds reflects multiple credit factors, the potential lack of oversight or fraud regarding the authority’s financial position could result in a lower rating,” said Standard & Poor’s analyst James Breeding. The NMFA’s AA-rated subordinate-lien bonds are also on watch list for downgrade.

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