Fitch affirms PNM Resources

Fitch Ratings said it affirmed PNM Resources' issuer default rating at BB, senior unsecured debt at BB, revolving credit facility at BB and short-term issuer default rating at B.

Also affirmed were Public Service Co. of New Mexico's issuer default rating at BB, secured pollution control revenue bonds at BBB-, senior unsecured notes at BB+, senior unsecured pollution control revenue bonds at BB+, revolving credit facility at BB+, preferred stock at BB- and short-term issuer default rating at B.

The agency also affirmed Texas New Mexico Power Co.'s issuer default rating at BB+, first mortgage bonds at BBB, secured term loan at BBB, secured revolving credit facility at BBB and short-term issuer default rating at B. About $1.6 billion of debt is affected by the rating action.

The outlook is stable.

The ratings reflect the company's high-debt-leverage relative to EBITDA, weak consolidated coverage ratios and low earned returns on equity at its core operating electric utility subsidiaries, Fitch said.

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