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New Jersey's credit downgraded for 11th time under Christie

New Jersey's credit rating has been downgraded for an 11th time under Republican Gov. Chris Christie. New Jersey's credit rating has been downgraded for an 11th time under Republican Gov. Chris Christie.
EDISON -

New Jersey's credit rating has been downgraded for an 11th time under Republican Gov. Chris Christie.

Moody's Investor Service on Monday dropped the state's credit rating on general obligation bonds one notch from A2 to A3. The agency cited the state's underfunded pension system and other budget issues, including the elimination of the estate tax.

The state has increased pension contributions since 2012, but Moody's says they're still bellowed recommended levels and that unfunded pension obligations are growing.

Christie and Democratic lawmakers last year cut the sales tax and eliminated the estate tax in a deal that led to an increase in the gas tax.

Moody's says the cuts will reduce revenue by $1.1 billion by the 2021 fiscal year and strain New Jersey's ability to resolve its large structural imbalance.

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