Quemado Independent School District No. 2, New Mexico


CUSIP 149321CP4
  • Issue Currency: United States of America Dollars
  • Announcement Date: 18-Jun-2018
  • News: Moody`s Investors Service has downgraded to Aa2 from Aa1 the rating on the State of New Mexico`s general obligation bonds and revised the outlook to stable from negative. This action affects approximate $260 million outstanding general obligation bonds. We have also downgraded to Aa3 from Aa2 the programmatic rating on the New Mexico School District Intercept Program, and to Aa3 from Aa2 the rating on the state`s only outstanding series of lease appropriation bonds. Moody`s maintains the Aa1 rating and stable outlook on the state`s senior lien transportation revenue bonds. This rating incorporates a number of credit strengths considered in our special tax methodology, including, but not limited to, the strong legal separation between the pledged transportation revenues and the state`s general fund.
CUSIP 149321CP4
  • Issue Currency: United States of America Dollars
  • Announcement Date: 17-Sep-2018
  • News: Moody`s Investors Service has downgraded to Baa2 from A3 the general obligation rating on Quemado Independent School District (ISD) No. 2, NM affecting $615,000 in outstanding debt. A stable outlook was assigned. RATINGS RATIONALE The downgrade to Baa2 is based on the district`s nominal scope of operations and narrow reserves, which are no longer in line with A3- peers. Further, the district`s pension burden is elevated and annual contributions remain below Moody`s calculated tread water. The rating also incorporates the district`s modestly-sized tax base with weak socioeconomic measures, and a low direct debt burden with rapid principal amortization. RATING OUTLOOK The stable outlook reflects our expectation that the district will continue to operate within a narrow financial position. FACTORS THAT COULD LEAD TO AN UPGRADE - Significant tax base expansion and economic diversification - Material increases to the district`s fund balance and reserves FACTORS THAT COULD LEAD TO A DOWNGRADE - Sustained tax base contractions - Deterioration of fund balance and cash reserves - Enrollment declines without corresponding expenditure management - Increased debt or pension burdens - Growing fixed costs that further hinders already limited financial flexibility
CUSIP 149321CN9
  • Issue Currency: United States of America Dollars
  • Announcement Date: 17-Sep-2018
  • News: Moody`s Investors Service has downgraded to Baa2 from A3 the general obligation rating on Quemado Independent School District (ISD) No. 2, NM affecting $615,000 in outstanding debt. A stable outlook was assigned. RATINGS RATIONALE The downgrade to Baa2 is based on the district`s nominal scope of operations and narrow reserves, which are no longer in line with A3- peers. Further, the district`s pension burden is elevated and annual contributions remain below Moody`s calculated tread water. The rating also incorporates the district`s modestly-sized tax base with weak socioeconomic measures, and a low direct debt burden with rapid principal amortization. RATING OUTLOOK The stable outlook reflects our expectation that the district will continue to operate within a narrow financial position. FACTORS THAT COULD LEAD TO AN UPGRADE - Significant tax base expansion and economic diversification - Material increases to the district`s fund balance and reserves FACTORS THAT COULD LEAD TO A DOWNGRADE - Sustained tax base contractions - Deterioration of fund balance and cash reserves - Enrollment declines without corresponding expenditure management - Increased debt or pension burdens - Growing fixed costs that further hinders already limited financial flexibility



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