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NJ credit rating drops on news of budget shortfall

5-1-14

TRENTON, N.J. (AP) — New Jersey’s credit rating has been lowered one notch by Wall Street after the state announced an anticipated $807 budget shortfall.

Fitch Ratings dropped the state’s credit rating one step to A+ on news of the shortage announced this week, with two months to go in the fiscal year.

The agency cited the state’s use of one-time budget fixes and overly optimistic revenue projections.

Standard & Poors took similar action last month.

A third ratings agency, Moody’s, on Thursday described the state’s budget gap as a “credit-negative development.”

A lower credit rating signals caution to investors and results in higher borrowing costs to the state.

Gov. Chris Christie’s revenue projections have missed their targets for three straight years, forcing budget adjustments.

Christie must close the gap by June 30.

  • GC

    The GOV. must make the pension payment promised to all workers who took drastic cuts in benefits and pay in addition to making increased pension payments themselves to help the state . If the payment is not made the GOV. is telling all pensioners he want the system to fail . The state need to stop double dipping and giving pensions out to people as political favors and creating boards and authorities that are not needed just to create jobs for friends and family.