NJ's Credit Looks Positive Amid Pandemic, Wall Street Says

NEW JERSEY — Good news for New Jersey as its credit outlook was upgraded to "positive" by Moody’s Investors Service - one of Wall Street's credit rating agencies.

"The state has responded to a brightening revenue and liquidity picture with several actions reflecting a recent commitment to addressing more aggressively its liability burdens, demonstrating improved fiscal governance and management. These actions include debt reduction and avoidance and acceleration of pension contributions," said Moody's.

Governor Phil Murphy and State Treasurer Elizabeth Maher Muoio both applauded the decision by Moody’s on Monday.

This upgrade follows the state's passage of a $46.4 billion budget that includes a large pensioncontribution.

"This year's $6.9 billion pension contribution and the over $4 billion we are putting towards repaying old debt and avoiding new, will improve the overall solvency of our pension fund and produce several billion dollars in long-term savings – moves that will pay dividends for years to come. Today's action by Moody's acknowledges that these decisions, cumulatively speaking, were both prudent and purposeful," said Muoio.

In addition to the general obligation bonds, Moody's also upgraded the outlook to positive for a host of other debt issued by the State, including appropriation backed debt; bonds issued by the Garden State Preservation Trust, NJ; moral obligation debt issued by the South Jersey Port Corporation; the New Jersey County College Enhancement Bond Program Chapter 12; New Jersey Municipal Qualified Bond Program and New Jersey Qualified School Bond Program intercept programs; and the New Jersey Transportation Trust Fund Authority's (NJ TTFA) Federal Highway Reimbursement Revenue Notes (GARVEEs).

"On the heels of a record 11 credit downgrades under the prior administration and in the midst of an unprecedented global pandemic, we've delivered historic levels of pension funding – including the first full contribution in a quarter of a century – set aside money to pay off a sizable portion of state debt and avoid future issuances, secured long-term savings for the State and its taxpayers, bolstered our surplus, and positioned ourselves well to tackle the remaining challenges that lie ahead. The fact that we've been able to accomplish all of this while creating a more fair and equitable playing field for the working families of this state is a testament to our values," said Murphy.

Have a news tip? Email alexis.tarrazi@patch.com.

Get Patch breaking news alerts sent right to your phone with our new app. Download here. Don't miss local and statewide announcements. Sign up for Patch alerts and daily newsletters.