Tags: credit | outlook | jersey

NJ Credit Outlook Negative

Wednesday, 19 Sep 2012 09:59 AM

By Sandy Fitzgerald

Standard and Poor’s has lowered its credit outlook for New Jersey from stable to negative, dealing yet another blow to the state’s financial status and Republican Gov. Chris Christie’s tax relief plans.
The outlook released Tuesday followed several other hits on New Jersey from the nation’s credit-rating agencies in recent days, the Newark Star-Ledger reports.
Standard & Poor’s didn’t change its AA- rating for the state, which remains one of the worst in the country, but said a lower rating could still happen if Christie’s projected 8 percent revenue growth this year doesn't pan out.
John Sugden, a credit analyst for Standard & Poor’s, said the outlook was revised to reflect longer-term expenditure pressures. These include increases in financing the state’s public pensions, higher Medicaid costs, and the rising cost of paying off the state’s debt.
Christie, though, is continuing his call for an income tax cut, calling it a “joke” that Democrats haven’t yet approved his plans.
Standard & Poor’s decision followed reports from two Wall Street firms, Moody’s and Fitch, which didn’t change the state’s credit rating but predicted its economic recovery would continue to trail the rest of the nation.
State treasury spokesman Andy Pratt said it was “gratifying” the three agencies all affirmed the state’s credit rating, but said Standard and Poor’s decision to lower its outlook will eventually  prove incorrect.
"We believe investors will find S&P’s arguments to be out of step and its basis for revising New Jersey’s outlook unconvincing, particularly in the face of the continued growth in New Jersey’s economy and state revenues," he said.
Meanwhile, Christie’s boasts of a “Jersey Comeback” have not come through, with the state’s revenue falling short, unemployment on the rise and foreclosures continuing to hinder the real estate market, the Star Ledger reported.

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

The 2016 'Book Race': GOP Candidates Like Ben Carson, Huckabee Sell Like Hotcakes

Friday, 30 Jan 2015 20:50 PM

If potential Republican presidential candidates' recent book sales are a strong indication of their electability, then B . . .

Smoke on Boston Train Scares Passengers Who Bust Out Windows to Escape

Friday, 30 Jan 2015 19:37 PM

A commute on Boston's Red Line Thursday morning turned into chaos as smoke filled the train and passengers broke out win . . .

Seth Jackson Sentence: Foster Dad Gets 32 Months in Hot Car Death

Friday, 30 Jan 2015 18:50 PM

Kansas foster dad Seth Jackson was sentenced to 32 months in prison Friday for the July death of a 10-month-old girl who . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved