No downgrade for public agency after phony audit
Moody’s Investors Service announced Wednesday that it was removing the New Mexico Finance Authority from under review for a possible downgrade.
The NMFA staff said Moody's and reaffirmed its previous Aa1 senior bond and Aa2 subordinate bond ratings for the finance authority's public projects fund.
The action affects $842 million in senior lien obligations and $332 million in subordinate lien obligations. Moody’s placed NMFA bonds under review after a fraudulent audit discovered in July.
No money was embezzled, but the fake audit led to the criminal conviction of a former NMFA controller, Greg Campbell. He received probation.
The Finance Authority is planning a June bond issue to fund about $50 million in public projects throughout New Mexico.
“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 chairwoman Nann Winter, left.