Fitch Downgrades New Jersey’s Credit Rating To AA-

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http://tpmdc.talkingpointsmemo.com/2011/08/fitch-downgrades-new-jerseys-credit-rating-to-aa-.php?ref=fpblg

On the same day a report suggested that New Jersey Gov. Chris Christie (R) is exploring a presidential bid, the ratings agency Fitch downgraded the state's credit rating from AA to AA-.

As the Wall Street Journal reports, the state's budget needs more funding to meet growing needs of pension and worker-benefit liabilities:

The ratings company said the pressure is exacerbated by New Jersey's weak economic recovery, high debt burden, limited financial flexibility and persistent structural imbalance.




Rating agency downgrades NJ bonds
http://www.phillyburbs.com/ap/business/rating-agency-downgrades-nj-bonds/article_0386cbb1-0fde-595c-858c-e5c80d9181c6.html

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The agency also downgraded the rating on the state's open space preservation bonds and its appropriations-backed debt.

Fitch cites increased pressure to pay for growing unfunded pension and health benefits liabilities, especially during a weak economic recovery. It also cited the state's already high debt burden and a persistent structural budget deficit.

The rating agency recognizes landmark pension and health benefits legislation signed into law this year, but says it wasn't enough.