SANTA FE, N.M. — New Mexico appears to have dodged an additional downgrade to its bond rating.

The Albuquerque Journal ( ) reported Tuesday Moody’s Investor Service announced last week the state would keep its current bond rating for general obligation bonds but with a “negative” outlook for the future.

A rating downgrade could have led to higher borrowing rates for infrastructure projects.

Moody’s had downgraded New Mexico’s top rating for general obligation bonds in October — it’s now AA1 instead of AAA — and some lawmakers had expressed concern about the possibility of a second downgrade.

In announcing New Mexico’s bond rating would not change, the credit rating agency cited several special session actions aimed at shoring up the state’s budget, including setting aside more money in cash reserves and creating a rainy-day fund.

Author photo
The AP is one of the largest and most trusted sources of independent newsgathering. AP is neither privately owned nor government-funded; instead, as a not-for-profit news cooperative owned by its American newspaper and broadcast members, it can maintain its single-minded focus on newsgathering and its commitment to the highest standards of objective, accurate journalism.