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    Entries in credit rating (1)

    Friday
    Mar312017

    The Week in Public Finance: Bad Balancing Acts, Best Taxpayer ROI and Double Taxation

    BY  MARCH 31, 2017

    Race to the Bottom?

    New Jersey’s pension problems and Illinois’ lack of a budget continue to dog their reputation in the eyes of creditors.

    In New Jersey, Moody's downgraded the Garden State one-notch this week to A3, citing the state’s “significant pension underfunding, including growth in the state's large long-term liabilities, a persistent structural imbalance and weak fund balances.”

    It’s the 11th downgrade by a credit rating agency during Gov. Chris Christie’s more than seven years in office. Overall, New Jersey’s credit rating has fallen four notches under Christie’s watch, from what’s considered high investment grade to borderline medium grade. Meanwhile, the state's unfunded pension liability has climbed to $136 billion, which mean it has less than half of what it needs to pay its retirees down the road.

    For its part, Illinois is the only state rated lower than New Jersey.

    Click to read more ...