In a major financial endorsement, the credit rating agency Moody’s Investors Service has upgraded New Jersey’s general obligation bonds to Aa3 from A1. This marks the ninth credit rating upgrade for the state since Gov. Phil Murphy took office.
Moody’s revised the state’s outlook from positive to stable, citing New Jersey’s robust budgetary surplus, its commitment to full pension contributions, and consistent tax revenue growth. The upgrade signals that the state is well-positioned to manage economic uncertainties.
Murphy highlighted the rating as a direct result of his administration’s “commitment to reversing decades of fiscal mismanagement.” He noted that difficult decisions were made to prioritize a strong surplus and deliver five consecutive full pension payments, setting New Jersey on a path to long-term financial stability.
“While there is more work to be done in the future, these tough decisions have put us on a long-term path to financial stability,” he said.
State Treasurer Elizabeth Maher Muoio echoed this sentiment, calling the upgrade “another vote of confidence” in the administration’s efforts to strengthen the state’s fiscal health. This latest upgrade further reverses a long history of 11 consecutive credit rating downgrades that occurred prior to the Murphy Administration.
Moody’s also pointed to New Jersey’s high education level and strong economic performance as factors that will support the state during a period of federal-level change.
The upgrade from Moody’s follows a similar one from S&P Global Ratings in August, which boosted New Jersey’s rating from A to A+.
