Pension Burdens Put New Mexico Cities At Risk of Credit Downgrade
Bad planning
SANTA FE – One of Wall Street's highly-regarded bond credit rating agencies has put four New Mexico communities on "review" for possible downgrades due to their pension obligations.
The finance director for the state's capital city said the ratings giant's numbers are wrong.
Moody's Investors Service has released a list of 29 local government entities across the country that the company claims have net pension liabilities that are too large compared to their rating category. On the list? The New Mexico cities of Santa Fe, Las Vegas and Alamogordo, as well as Sante Fe County.
Moody's compiled the list after changing the way it analyzes pension obligations on the state and local levels.