Moody's Upgrades New Jersey Credit Rating to Aa3, Stable Outlook

Moody's Ratings upgraded New Jersey's issuer rating to Aa3 from A1 and revised its outlook to stable from positive. The upgrade reflects the state's improving financial position, driven by a growing economy, declining unemployment, and a balanced budget.

Moody's Ratings has upgraded New Jersey's issuer rating to Aa3 from A1 and revised its outlook to stable from positive. The upgrade reflects the state's improving financial position, driven by a growing economy, declining unemployment, and a balanced budget New Jersey credit rating raised by Moody's; outlook revised to stable^[1].

The upgrade was driven by New Jersey's ability to maintain a robust budgetary surplus through the current fiscal year, even while meeting pension contributions and other spending commitments. The state's fund undesignated fund balance is projected to be $6.75 billion, or almost 12% of appropriations for the fiscal year ending June 30, 2026, allowing it to continue sound pension contribution practices. However, retirement benefit underfunding remains a challenge, limiting the state's fiscal flexibility New Jersey credit rating raised by Moody's; outlook revised to stable^[1].

The upgrade also highlights New Jersey's ability to manage its finances effectively despite federal policy changes accelerating expense growth in health care. This is a positive sign for investors, indicating that the state's financial position is strengthening.

Relevant tickers for investors to consider are Nuveen New Jersey Quality Municipal Income Fund (NXJ) and BlackRock MuniHoldings New Jersey Quality Fund (MUJ) New Jersey credit rating raised by Moody's; outlook revised to stable^[1].