March 2, 2022 | bloomberg.com
On Wednesday (3/2), Moody’s Investors Service raised New Jersey’s credit rating, giving the state its first upgrade since 2005, after years of pension underfunding and benefit increases. An upgrade can lead to reduced borrowing costs for states, as bond investors are willing to accept lower yields from issuers considered less likely to default.
NJ SEED: Credit ratings are essential tools for investors to make informed decisions. Ratings companies are impressed with NJ’s steps to address liability burdens. A big plus in the state’s favor was that in FY 2022 for the first time in 25 years NJ made the full minimally required payment to the pension system.