Moody’s upgrades New Mexico to one of the nation’s highest bond ratings 

Moody’s upgrades New Mexico to one of the nation’s highest bond ratings 

SANTA FE, NM — In clear affirmation of New Mexico’s fiscal discipline and leadership, Moody’s Ratings has upgraded the state’s issuer rating to Aa1 from Aa2, placing New Mexico among the top-tier rated states in the country.  

“This upgrade is the result of years of smart, disciplined budgeting and strategic investments that benefit every New Mexican,” said Governor Michelle Lujan Grisham.  

Moody’s cited New Mexico’s disciplined fiscal management and well-established governance practices, noting that the state has reduced its reliance on volatile oil and gas revenues while growing permanent fund balances that now generate substantial and reliable investment income. 

“This upgrade is a clear vote of confidence in New Mexico’s fiscal governance, in particular the prudent management of the revenues we have been fortunate to earn over the past few years, as well as the systems we’ve put in place to plan responsibly, save strategically, and invest in the future for generations to come,” said Secretary Wayne Propst of the Department of Finance and Administration. 

The report also acknowledges external pressures tied to federal policy changes, including federal job losses and future Medicaid eligibility reductions beginning in 2027. Despite these challenges, Moody’s noted that New Mexico’s economy continues to grow, supported by job gains in education and state and local government. 

The issuer upgrade was accompanied by several additional rating improvements: 

Moody’s ratings on New Mexico’s long-term bonds rank among the highest investment-grade levels nationwide, reinforcing the state’s reputation for strong financial stewardship and long-term fiscal stability.