Bye Bye 2012: Christie Causes Downgrade

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.

From report:


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.

Comments (13)

  1. William Weber (WjcW)

    the report cites the pension/benefit cost as the reason for the downgrade.

    The actuarially required amount is about 3.5 billion per year (pension funding alone).

    But your convinced the 600 million raised annually by millionaire surcharges (if it went entirely to pension funding) would have saved the downgrade?

    Reply
  2. johnleesandiego

    let’s see how he pins this one on blind and handicapped children just as he has done with everything else  

    Reply
  3. speedkillsu

    “Despite recent, significant action to contain future growth in the state’s accumulated pension liability, “…-“Management has proactively responded to past revenue weakness, and growth in state spending has been contained. “…….always must read past the headlines ,Now if New Jersey could get the courts out of the funding business  

    Reply
  4. Bertin Lefkovic

    …for Christie than Romneycare will be for Mitt Romney.

    Reply

Leave a Comment

Your email address will not be published. Required fields are marked *