Newark’s Credit Outlook With Moody’s Slips: Report

NEWARK, NJ — Moody’s downgraded the City of Newark’s credit outlook last week, a report says.

Newark’s credit outlook went from stable to negative, with Moody’s citing a $640 million municipal debt, NJ Advance Media reported.

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“Newark will likely need to raise property taxes significantly, request aid from the state, and enact expenditure cuts, or some combination of the three, to halt the deteriorating financial situation,” Moody’s stated Friday.

Read the full article here.

A credit outlook is different from a Moody’s credit rating, which attempts to measure the risk of defaulting on debt. Meanwhile, credit outlooks are an attempt to predict the future path of a credit rating.

Moody’s upgraded Newark’s issuer rating – a measure of a borrower’s overall general creditworthiness – from Baa2 to Baa1, and revised the city’s outlook from “Positive” to “Stable” in 2024.

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