Fitch Ratings Cuts New Jersey Debt Grade
Posted on 04/26/2020
The State of New Jersey under Governor Phil Murphy got whacked with its first credit-rating downgrade in three years. Fitch Ratings lowered New Jersey’s debt grade one level from “A” to “A-“. In addition, Fitch Ratings moved the rating outlook from “stable” to “negative”.
With being one of the highest taxed states and benefitting from a close proximity to Manhattan, New Jersey has longstanding fiscal problems including a lack of reserves and a massive long-term pension liability. This state’s financial position has been impacted by the Wuhan coronavirus lockdown. New Jersey has one of the worst funded state retirement plans.
Governor Phil Murphy, a former Goldman Sachs executive and Democrat, publicly admitted that New Jersey had a long history of fiscal mismanagement from both political parties. Former New Jersey Governor Jon Stevens Corzine is also a former Goldman Sachs executive and former CEO of defunct MF Global.
