Pulled up top for all the night owls. Promoted, this time, by Rosi
I guess taxing millionaires wasn’t such a bad idea after all.
From Business Wire:
Fitch Ratings downgrades the State of New Jersey’s outstanding general obligation (GO) bonds to ‘AA-‘ from ‘AA’.
Fitch also downgrades to ‘AA-‘ from ‘AA’ the rating on the Garden State Preservation Trust’s open space revenue bonds.
Additionally, Fitch downgrades to ‘A+’ from ‘AA-‘ the ratings on the state’s appropriation-backed debt and other related debt, which is detailed at the end of this release.
The Rating Outlook for all affected bonds is revised to Stable from Negative.
Sound fiscal policy with Christie? Try Again!
New Jersey just lost its credit and credibility.
KEY RATING DRIVERS
–The downgrade of the state’s GO rating to ‘AA-‘ from ‘AA’ reflects the mounting budgetary pressure presented by significant and growing funding needs for the state’s unfunded pension and employee benefit liabilities, particularly in the context of a weak economic recovery, a high debt burden, limited financial flexibility, and persistent structural imbalance.
–The state’s accumulated pension liability, continued funding level deterioration is projected through the medium term as full funding of the actuarially required contributions is phased in, resulting in sizeable increases in annually required contributions.
Fitch believes that meeting the requisite increases in pension contributions will be challenging and is likely to conflict with other long term challenges, such as property tax relief, school funding, and infrastructure needs.
— The state’s budget remains structurally imbalanced inclusive of unfunded pension contributions. Reserve balances are expected to remain narrow, offering limited flexibility to absorb unforeseen needs.
—The state’s recent economic performance has been weak and the state is expected to lag the nation in recovering from the recent recession.
Great job Christie and Christiecrats, you busted unions for nothing. Christie has reformed nothing. The Pen/Ben bill was about power not economics.
I guess this is what happens when lobbyists govern, the press believes their lies but the other sharks know chum when they smell it.
Yeah let’s bring this sound management and straight talk to D.C.
Forget AA with Christie try an F rating, for FAIL.
UPDATE: Business Insider throwing in the towel:
Lights out for Chris Christie.
Today there was buzz about him possibly jumping into the race, but that’s over.
New Jersey just got its credit rating downgraded by Fitch from AA to AA-.
It might not be a big deal, and it might not be his fault, but this should probably kill any buzz about him running for President right now, given that THE DOWNGRADE is expected to be such a salient point of attack for any eventual GOP nominee.