Kroll Bond Rating Agency (KBRA) this week upgraded its outlook on New Jersey’s General Obligation Bonds from stable to positive, citing New Jersey’s continued efforts to fully fund the public pension system as well as conservative budgeting that has rebuilt the State’s surplus.
In its announcement about the outlook upgrade, KBRA said a rating upgrade may be warranted in the near term.
“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,” KBRA said.
The move by KBRA follows recent credit rating upgrades from Moody’s and Standard & Poor’s. In April 2023, KBRA upgraded New Jersey’s credit rating from A to A+.
“This announcement by KBRA is another indicator that we are setting New Jersey up for long-term financial success,” said Gov. Phil Murphy on Wednesday. “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.”
The state has received nine rating upgrades since Murphy took office in 2018, following 11 prior credit rating downgrades.
For a history of New Jersey’s credit ratings, go here.
