New Jersey's Bond Rating Slashed By S&P
According to an article by Investment News, New Jersey’s bond rating was downgraded by Standard & Poor’s, which cited the state’s pension and benefit time bomb that could cause damage to its financial health. New Jersey is among 46 states facing a combined $140 billion worth of budget deficits over the next fiscal year, based on findings by the Washington based Center on Budget and Policy Priorities.
This is the first downgrade of a state by S & P since downgrading California in January 2010. Only California and Illinois have lower credit ratings now than New Jersey. New Jersey now becomes the third lowest rated state tied with Arizona, Kentucky, Louisiana and Michigan.