TRENTON, N.J. — Kroll Bond Rating Agency (KBRA) has upgraded its outlook on New Jersey’s General Obligation Bonds to Positive, citing the state’s continued efforts to fully fund its pension system and pursue conservative budgeting that has helped rebuild the state’s financial surplus.
In its announcement, KBRA said a full rating upgrade could follow soon.
“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 in its release.
The decision comes after similar credit rating upgrades from Moody’s and Standard & Poor’s. KBRA last upgraded New Jersey’s credit rating in April 2023, raising it from A to A+.
“This announcement by KBRA is another indicator that we are setting New Jersey up for long-term financial success,” said Governor Phil Murphy. “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.”
Since Governor Murphy took office in 2018, the state has received nine credit rating upgrades following 11 downgrades in prior years.
