New Jersey suffered its second financial downgrade to its bond ratings this year, giving a black eye to Gov. Chris Christie as he considers a run for the White House in 2016.
The downgrade from âAâ to âA-â demonstrates the “fiscal pressure the state faces,â a report from Fitch Ratings said.
This is the seventh rating cut under Christie, âthe most under any New Jersey governor,â NJ.com said. In May, Fitch downgraded New Jerseyâs rating from âA+â to âA.â
Fitch’s downgrade of New Jersey âincorporates the absence of long-term, fiscally sustainable solutions to close identified budget gaps in fiscal years 2014 and 2015,â according to the report.
Christieâs decision to fill New Jerseyâs budget gap by cutting $2.4 billion in funding to the stateâs already underfunded pension system also was a factor in the downgrade, according to NJ.com. The state also suffered from “significant revenue underperformance,” according to Fitch.
Christie just returned from a 3-day long trip to Mexico, which was billed as a trade mission.
