Moody’s places New Mexico’s credit rating ‘under review’ for downgrade

[Horse with no Name]

http://newmexicoindependent.com/70789/moodys-places-new-mexicos-credit-rating-under-review-for-downgrade/

Moody’s Investors Service placed New Mexico and four other states with AAA credit ratings “under review” for downgrade Tuesday because of their sensitivity to a possible downgrade of U.S. creditworthiness if the $14.3 trillion debt limit is not raised.

Of the 15 states with the highest credit rating, ten were not placed “under review” for downgrade. New Mexico was because of its above-average rate of federal employees, percentage of Medicaid spending as a share of the state budget, high number of federal contracts and a relatively high risk of capital market flight.

A downgrade to AA1 of New Mexico’s creditworthiness would rise borrowing costs for the state. However, unlike most states, thanks to New Mexico’s mineral wealth revenues are set to rise in this fiscal year and the upcoming year.

Rising revenues mitigate the risks of a downgrade, but the other factors still make New Mexico’s creditworthiness subject to review, according to Moody’s.

[Waiting For Everyman]

1. And so we can conclude...

The kabuki by the RepubliCONS over the debt ceiling results in... what?... highter interest rates!!! And that means more money for... the BANKS (and mega "investors"). Wow, what a surprise! That result from it must be an accident, or something.

:sarcasm: