Regional
3:41 pm
Tue July 19, 2011

Moody's: New Mexico's Credit Rating Will Likely Fall If The U.S. Rating Falls

New Mexico – Moody's Investors Service says it will likely lower the credit rating on New Mexico and four other states should the ratings firm downgrade the U.S. government's credit rating.

The credit rating agency said Tuesday that it has placed on review for possible downgrade the triple-A bond ratings of Maryland, New Mexico, South Carolina, Tennessee and Virginia.

Last week, Moody's placed the U.S. government's credit rating under review for a possible downgrade, citing a small but rising risk that the government will default on its debt as Congress and the White House wrestle over raising the nation's $14.3 trillion borrowing limit.

The firm's review of the five states affects some $24 billion in obligations and related debt, combined.

Copyright 2011 The Associated Press.