N.J. credit rating cut record ninth time as Moody's cites pension shortfall

[deminks]

http://www.nj.com/politics/index.ssf/2015/04/nj_credit_rating_cut_record_ninth_time_as_moodys_c.html

TRENTON — Moody's Investors Service has downgraded New Jersey's debt rating, dealing the Garden State its record ninth ratings cut since Gov. Chris Christie took office.

The ratings drop by one notch, from A1 to A2, on $32.2 billion worth of bonds underscores the state's "weak financial position and large structural imbalance, primarily related to continued pension contribution shortfalls," Moody's said in a statement Thursday.

The rating agency warned that future pension underfunding and ongoing structural deficits could drive further downgrades.

"We expect liquidity and structural balance to remain very weak through fiscal 2016," the agency said.

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