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S&P Global Downgrades New Jersey’s Bond Rating

Sweeney & Prieto

Pension liabilities and revenue loss from lower taxes are cited

By
KATE KING
Updated Nov. 14, 2016 6:18 p.m. ET

S&P Global Ratings cut its rating for New Jersey’s general-obligation bonds Monday, marking the state’s 10th credit downgrade under Republican Gov. Chris Christie.

The downgrade stemmed from the state’s rising pension liabilities along with an expected drop in revenue as part of a transportation-funding package signed by Mr. Christie, said David Hitchcock, senior director at S&P Global.

The New York ratings, data and index firm lowered New Jersey’s credit rating to “A-” from “A” and assigned a negative outlook.

“Just as the state is pushing off some of their pensions costs into later years, they are also pushing off some of their revenue loss into later years,” Mr. Hitchcock said. “It’s adding incremental pressure.”

Credit ratings help determine the interest rates that states pay when they sell bonds; a lower credit rating means higher borrowing costs.

https://www.wsj.com/articles/ratings-firm-downgrade-new-jersey-1479162490

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Fitch affirms, New Jersey’s bond rating,, NJ Pension Crisis, rapidly rising pension costs

Trenton_New_Jersey

BY SALVADOR RIZZO
STATE HOUSE BUREAU |
THE RECORD

After taking a look at Governor Christie’s new budget proposal, Fitch Ratings affirmed New Jersey’s “A” credit rating Thursday instead of issuing another downgrade.

But Fitch analysts warned that pension costs are rising rapidly while Christie and lawmakers are unable to find common ground on New Jersey’s biggest financial problems.

 

https://www.northjersey.com/news/fitch-affirms-new-jersey-s-bond-rating-warns-of-rapidly-rising-pension-costs-1.1529469