Fitch Ratings said it has affirmed the AA-minus rating on the state of New Jersey's approximately $2.4 billion in outstanding general obligation debt and revised the rating outlook to negative from stable.
The rating action also affects securities that are linked to the state GOs.
General obligations of the state are secured by the full faith and credit of the state.
Appropriation bonds, certificates of participation, and Garden State Preservation Trust revenue bonds are secured by annual state legislative appropriations, and in some cases, certain defined pledged revenue streams.
The revision of the state's rating outlook to negative incorporates ongoing budget strain, even as revenues continue to recover, and economic performance that is providing insufficient support to meet the growing demands of the state's high long-term liabilities.
