Moody’s Investors Service on Wednesday revised New Jersey’s outlook to “positive” from “stable,” reflecting “(Its) strong economic and revenue performance that will allow the state to narrow its structural gap and retain substantial budgetary reserves while maintaining full actuarial pension contributions in fiscal 2026.”
Gov. Phil Murphy and State Treasurer Elizabeth Maher Muoio welcomed the news.
“This latest Moody’s outlook revision, from ‘stable’ to ‘positive,’ is evidence that our formula to strengthen New Jersey’s economic trajectory is working,” Murphy said. “In its report, Moody’s cited an economy outpacing mid-Atlantic peers, solid economic and revenue performance, full pension payments, strong fund balances and the full funding grant agreement for the Hudson River Tunnel Project, among other areas of progress. We remain laser focused in our multiyear efforts to restore the state’s fiscal standing.”
The agency also cited the budget surplus, which is significantly larger than the state has historically maintained.
“This outlook upgrade is especially good news given that it comes just a year after the state received a rating boost from every major credit rating agency,” Muoio said. “That signals to us that the fiscal decisions we have made — namely to maintain a healthy budget surplus and continue to meet our pension obligations — are the right ones.”
