In major hit to NJ’s credit rating, Wall Street agency lowers state’s bond grade

S&P Global Ratings concerned about state’s ‘significant structural deficits’ as it prepares to borrow more than $4 billion

By John Reitmeyer, NJSpotlight

New Jersey’s credit rating has taken a significant hit from a major Wall Street rating agency as the state is preparing to borrow more than $4 billion to sustain the budget during the coronavirus pandemic.

Citing concerns about “significant structural deficits,” S&P Global Ratings announced Friday that it has lowered New Jersey’s credit rating for general-obligation bonds by one notch, to “BBB+.”

The S&P downgrade comes as Gov. Phil Murphy’s administration is preparing to issue $4.29 billion in new debt without voter approval to help offset revenue losses triggered by the health crisis. The debt sale is currently planned for Nov. 18, Department of Treasury officials said Friday.