S&P changes PNM Resources view

S&P said it revised the outlook on PNM Resources Inc. and subsidiaries Public Service Co. of New Mexico (PSNM) and Texas-New Mexico Power Co. (TNMP) to negative from stable.

At the same time, the agency affirmed the ratings, including the BBB+ issuer credit ratings on all entities, the BBB+ ratings on PSNM's senior unsecured debt and the A ratings on TNMP's senior secured debt.

S&P said the negative outlook reflects weaker cash flows for consolidated PNMR largely stemming from the effects of the revised U.S. corporate tax code.

In addition, the outlook takes into account the unresolved prudence issue related to PSNM's continued investments in its coal-fired Four Corners power plant, potentially resulting in regulatory headwinds that could challenge the company's ability to consistently manage regulatory risk in New Mexico.

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