Moody’s Investors Service Monday revised its outlook on New Jersey to negative from stable, citing such fiscal challenges as more than $32 billion of outstanding debt, a structural imbalance and an empty rainy-day fund.

“Through several administrations, the state has utilized non-recurring solutions to resolve budgetary gaps, leaving the state with a sizeable structural imbalance, one of the highest debt burdens, one of the lowest-funded pension ratios and one of the highest post-retirement health insurance liabilities in the country,” according to a Moody’s report.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.