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.
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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.
