Wall Street firm S&P Global has upgraded New Jersey’s credit rating to A+ from A, marking the third upgrade during Governor Phil Murphy’s administration. The agency made its decision on August 11, pointing to efforts by the state government to address debt and public worker pension obligations while also maintaining financial reserves.
Marc Pfeiffer, a senior policy fellow at Rutgers University’s Bloustein School of Planning and Public Policy who studies local government in New Jersey, commented on the significance of the move. “The rating upgrade announcement is ‘very reputational,’” Pfeiffer said. He noted that despite attention in news headlines, these upgrades are technical measures that do not directly impact taxes for residents on a daily or yearly basis.
Credit ratings play an important role in determining how much it costs for states to borrow money for large projects such as schools and transportation infrastructure. Pfeiffer explained, “When companies look to relocate, they consider the fiscal condition of the state and its ability to provide services and infrastructure. Bond rating is a rough representation of that ability compared to other places.”
The improved credit rating reflects ongoing fiscal policies aimed at stabilizing New Jersey’s finances under Governor Murphy’s leadership.
