Standard & Poor’s - THE RIDGEWOOD BLOG.

Standard & Poor’s lowers New Jersey credit rating

SEPTEMBER 10, 2014, 12:15 PM LAST UPDATED: WEDNESDAY, SEPTEMBER 10, 2014, 6:00 PM
BY JOHN REITMEYER
STATE HO– USE BUREAU
THE RECORD

Another Wall Street ratings agency has downgraded New Jersey’s credit rating as a response to Governor Christie’s decision earlier this year to cut funding for the public employee pension system.

Standard & Poor’s said in an announcement released Wednesday that the lowering of New Jersey’s credit rating by one step to “A” is in response to recent contributions into the pension system that are well below what actuaries say is needed to keep the system solvent.

“The downgrade reflects our view that New Jersey will face increased long-term pressures in managing its long-term liabilities and that the revenue and expenditure misalignment will grow based on reduced funding for the state’s unfunded actuarial accrued liability,” said Standard & Poor’s credit analyst John Sugden.

– See more at: https://www.northjersey.com/news/standard-poor-s-lowers-new-jersey-credit-rating-1.1084904#sthash.G3QRWVz7.dpuf

New Jersey’s credit rating lowered to A+ by Standard & Poor’s

APRIL 9, 2014, 4:47 PM LAST UPDATED: WEDNESDAY, APRIL 9, 2014, 7:00 PM
BY HUGH R. MORLEY
STAFF WRITER
THE RECORD

Standard & Poor’s downgraded New Jersey’s credit rating Wednesday, saying that the state is dealing with a “structural imbalance” and its efforts to balance the budget will “contribute to future budgetary pressures.”

The ratings agency reduced the state’s general obligation debt one step, to A+ from AA-, lowered ratings for other kinds of debt, and offered unsparing criticism of the state’s financial position just over two weeks after Governor Christie released a $34.4 billion budget.

“Almost five years after the official start of the economic recovery, New Jersey continues to struggle with structural imbalance and stands in stark difference to many of its peers who registered sizeable budgetary surpluses in fiscal 2013,” the statement said.

It added that the state is now suffering from the effects of “bullish revenue assumption and overreliance on untested or uncertain revenues” in the past two budgets.

The downgrade puts the state’s grade four levels below the top, and leaves it with California and Illinois in the single-A category, lower than 47 other states, Bloomberg News reported. A lowered rating generally leads to higher borrowing costs.

At the same time the ratings agency gave New Jersey a stable outlook. S&P had held a negative outlook for New Jersey since September 2012.

– See more at: https://www.northjersey.com/news/new-jersey-s-credit-rating-lowered-to-a-by-standard-poor-s-1.877458#sthash.C8zwFwtz.dpuf