Christie Cuts Make New Jersey Towns Lead Downgrades
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Towns and cities in New Jersey, the second-wealthiest U.S. state, lead the nation in bond-rating downgrades this year.
From Newark to Seaside Heights, home of MTV’s reality television show “Jersey Shore,” Moody’s Investors Service cut ratings on $1.7 billion in general-obligation debt issued by at least 24 municipalities in New Jersey this year, almost twice as much as the next-highest state, New York, according to a tally by Bloomberg News. The moves follow local-aid cuts by Democratic Governor Jon Corzine and his Republican successor, Chris Christie, who has also enacted a 2 percent annual cap on property-tax increases.