New Jersey Wins Its First Credit-Rating Upgrade Since 2005

  • Phil Murphy notches sought-after nod to his fiscal management
  • Pension burden, third-highest unemployment among challenges

Phil Murphy

Photographer: Angus Mordant/Bloomberg
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New Jersey Governor Phil Murphy just got the one reward he has been after since taking office four years ago: a credit-rating upgrade.

On Wednesday, Moody’s Investors Service raised New Jersey’s credit rating, giving the state its first upgradeBloomberg Terminal since 2005, after years of pension underfunding and benefit increases. An upgrade can lead to reduced borrowing costs for states, as bond investors are willing to accept lower yields from issuers considered less likely to default.