News for Munis
Aug 4 · 10:41:00 AM · Source: Bloomberg.com
New Jersey had the credit-rating outlook on $31 billion in debt reduced to negative from stable by Moody’s Investors Service, which said the recession hurt tax revenue and led the state to deplete its reserves.
New Jersey has Moody’s ratings of Aa3, the fourth-highest investment grade, on $2.5 billion in general-obligation bonds and A1, one level lower, on $28.5 billion in appropriation- backed securities. Its net tax-supported debt load is the third highest among U.S. states after California and New York.
The outlook change, disclosed late yesterday in a news release by the New York-based credit-rating company, raises the possibility that those ratings will be reduced.
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