EMJ - New Jersey GO bond rating cut to BBB+ by S&P; outlook stable

S&P Global Ratings lowers its rating on New Jersey's general obligation bonds by one level to BBB+, still squarely in investment-grade territory, from A-.The state's long-term and underlying ratings are cut to BBB from BBB+ on various other bonds secured by annual appropriations from the state.Outlook on all bonds is stable."The downgrade reflects our view that New Jersey will continue to have a significant structural deficit that will be difficult to close in the coming years because of decreased revenues as a result of the COVID-19 pandemic, combined with high and increasing debt, pension, and other postemployment benefit liabilities," said S&P Global Ratings credit analyst David Hitchcock.Until the COVID-induced recession, New Jersey had been making progress in closing its structural deficit, but its progress relied on steady revenue growth during the long economic expansion preceding the pandemic shock.The stable outlook reflects high income levels and forecasted economic growth in 2022, SP

For further details see:

New Jersey GO bond rating cut to BBB+ by S&P; outlook stable