Fitch Ratings Takes Scalpel to NJ Debt Grade, Cutting It Back to 'A-'
New Jersey suffered its first credit-rating downgrade in three years on Tuesday, as the coronavirus pandemic deals another blow to recent efforts to rehabilitate the state’s strained finances.
The downgrade announced by Fitch Ratings lowered New Jersey’s debt grade one notch, from “A” to “A-,” and also knocked the rating outlook from “stable” to “negative.”
Fitch’s analysts cited ongoing economic upheaval being caused by the pandemic, as well as some of the state’s longstanding fiscal problems, including a huge long-term pension liability and a “lack of meaningful reserves,” in its downgrade announcement.
Gov. Phil Murphy responded to the downgrade while answering questions from reporters during a coronavirus media briefing on Tuesday, saying “You never want to see a downgrade.” He also pointed to a long history of “fiscal mismanagement” that he said occurred under both political parties before he took office in early 2018.
Read more: https://www.njspotlight.com/2020/04/fitch-ratings-takes-scalpel-to-nj-debt-grade-cutting-it-back-to-a/