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Citing debt and benefits, Fitch lowers bond rating for New Jersey
Despite its efforts to cut spending, New Jersey is a riskier investment, one of the leading ratings agencies said on Wednesday as it lowered the state’s credit rating, citing heavy debt and benefits obligations.
Fitch Ratings lowered its assessment of New Jersey’s general obligation bonds one notch, to AA– from AA. Fitch’s ratings for Kentucky and Michigan are also AA–; only California and Illinois have worse ratings.
In June, Gov. Chris Christie and the Legislature agreed on health care and pension changes for public workers that will save New Jersey billions of dollars. That deal added to other large budget cuts Mr. Christie had passed since taking office in January 2010, as well as savings he hopes to get in continuing contract talks with public-employee unions. (Pérez-Peña, The New York Times)
