NJ Gets Third Credit Rating Upgrade This Year

NEW JERSEY — A New York rating firm has upgraded New Jersey's credit, the third upgrade this year – a significant accomplishment following years of downgrades that have harmed the state's borrowing power.

The recent upgrade by Fitch is historic because it is the first time firm has upgraded New Jersey since it began rating the state in 1992.

Governor Phil Murphy and State Treasurer Elizabeth Maher Muoio applauded Fitch Ratings' decision today to raise New Jersey's credit rating on general obligation bonds to "A" from "A-," while keeping the state's outlook positive.

Since the enactment of the 2022 State budget last year, New Jersey has received three credit rating upgrades and is currently on a positive outlook with S&P, Fitch, and KBRA.

Murphy, a former Wall Street banker who ran on a promise to restore the state's fiscal health and met with major rating agencies on a regular basis, says the recent wave of upgrades is proof positive that his administration's policies are working.

“We’ve made remarkable strides to get our fiscal house in order, from making our full pension payments two years in a row to building a strong, reliable surplus that will help our State weather potential storms,” Murphy said. “There’s no doubt our fiscal position is far stronger than the situation we inherited, and we’re committed to continuing on this path to a more resilient, affordable New Jersey.”

Like many other states, New Jersey's finances have been remarkably resilient in comparison to earlier forecasts since the pandemic struck, thanks to federal pandemic aid, state balancing actions and tax collections that have exceeded earlier projections, according to officials.

"The strong fiscal momentum of recent years and consistent policy actions to confront (New Jersey’s) long-term fiscal and liability challenges reflect a notable improvement in budget management,” Fitch said.

The agency cited the State's efforts to prioritize building a sizable fiscal cushion amid recent robust revenue collections, while also addressing debt and pension liabilities.

“Today New Jersey finds itself on more solid fiscal footing than we were before the COVID-19 pandemic and many years prior,” State Treasurer Elizabeth Maher Muoio said. “We took advantage of our State’s solid economic recovery to invest in New Jersey’s future, including paying down debt and fulfilling our obligations. We’re proud of this progress, as evidenced by upgrades from three of the major rating agencies.”