>New Jersey Fiscal Crisis: New Jersey Credit rating dropped to among the lowest in the country
Drop in N.J. bond rating could add to state’s borrowing costs, financial problems
Published: Thursday, February 10, 2011, 6:00 AM
TRENTON — New Jersey’s bond rating was downgraded Wednesday by Standard & Poor’s, a move that could add significantly to the state’s borrowing costs and focuses even more attention on public-employee pension and health care payments.
The agency dropped New Jersey to a rating that is among the lowest in the country. According to S&P, the only states with worse credit ratings are California and Illinois, widely considered to be in the steepest financial trouble.
With S&P citing pension and post-retirement-benefits costs as a key reason for the downgrade, Republican Gov. Chris Christie and Democrats pointed fingers at each other. At a town hall meeting in Union City, Christie said the downgrade could have been avoided if Democratic lawmakers approved his pension overhaul.
“The sky started to fall in today,” said Christie. “You’ve already seen this morning what the Legislature’s inaction has cost the state of New Jersey.”
