Kroll Bond Rating Agency (KBRA) has upgraded the outlook on New Jersey’s General Obligation Bonds from stable to positive. The agency cited the state’s efforts to fully fund its public pension system and conservative budgeting that has increased the state’s surplus.
KBRA stated, “The outlook revision to positive reflects the state’s progress in reducing long-term pension liabilities and its continued adherence to conservative budgeting practices that have supported the orderly use of reserves accumulated during the COVID-19 pandemic.” The agency indicated that a rating upgrade may be possible in the near future.
This change follows recent credit rating upgrades for New Jersey from Moody’s and Standard & Poor’s. In April 2023, KBRA raised the state’s credit rating from A to A+.
Governor Phil Murphy commented on the announcement: “This announcement by KBRA is another indicator that we are setting New Jersey up for long-term financial success. This vote of confidence, in addition to the nine credit rating upgrades we have received in just over three years, signals that our efforts to build a strong, reliable surplus and fulfill our pension obligations are paying off.”
Since Murphy took office in 2018, New Jersey has received nine rating upgrades after previously experiencing 11 downgrades.
For a history of New Jersey’s credit ratings, go here.
