New Jersey is highly likely to reduce or delay its public pension contributions because of the coronavirus, according to a report from S&P Global Ratings that downgraded the state one ratings notch.
Analysts said there is a “significant possibility” there will be a reduction or postponement in contributions, given the extraordinary pressure the nation’s worst funded retirement system is putting on New Jersey’s already constrained budgets, according to a Wednesday report from the credit rating agency.
The report gave the state an “A-,” down from an “A,” with an outlook for future rating actions moving to negative from stable.
For New Jersey, ongoing revenue losses may well result in another credit downgrade. S&P Global Ratings analysts said there is a 33% chance the state will see its score cut once more within the year.
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This article republishes selections from “New Jersey Likely to Cut Pension Contributions, S&P Global Says” an article by Sarah Min for Chief Investment Officer, 5/1/2020.