New Jersey Debt Rating Cut by Fitch on Revenue Shortfall
This article is for subscribers only.
New Jersey’s credit rating was lowered one step to A+ by Fitch Ratings, which cited an $807 million revenue shortfall and Governor Chris Christie’s likely use of one-time measures to plug the gap.
The company cut the state’s general-obligation debt to the fifth-highest investment grade, saying revenue forecasts were “overly optimistic.” Fitch also expressed concern over “both the scale and belatedness” of the shortfall, with two months left in the fiscal year. Fitch maintained a negative outlook on the state’s credit, meaning it may face a further downgrade.