TRENTON, N.J. (AP) — A bond rating agency has lowered New Jersey’s bond rating, meaning it could cost the state more to borrow money.
Standard & Poor’s announced its action Wednesday, saying the state still has a structural deficit even as the economy is improving.
The report blames the state debt, its pension obligation and one-time measures that cannot be sustained to fill budget gaps.
The general obligation rating was dropped to A-plus from AA-minus. The new rating means the state is still considered to have a strong capacity to meet debts but it is more susceptible to changes in economic conditions.
Kevin Roberts, a spokesman for Gov. Chris Christie, says the state is trying to address all the concerns but needs lawmakers to agree to changes in the pension program for public employees.