Moody's Lowers New Jersey's Bond Rating Over Pension Funding Problems

April 17, 2015 5:46 PM

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Moody's Investors Service has downgraded New Jersey's general obligation bonds to A2 from A1. The outlook is negative. The ratings on the state's appropriation-backed, other GO-related debt, and intercept programs have also been lowered one notch.

The negative outlook reflects an expectation that the state's financial and pension position will weaken further before pension reform, if successful, is implemented. Without meaningful structural changes to the state's budget, such as pension reform that dramatically improves pension affordability,...

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