Kroll Bond Rating Agency upgraded the state of New Jersey's general obligation bonds to A-plus from A.
The move Monday by KBRA followed upgrades from Moody's Investor Service,
KBRA revised the outlook on the state to stable from positive.
"This upgrade from KBRA makes it a grand slam for New Jersey's bond rating and is proof positive that our efforts to budget responsibly have paid off," Gov. Phil Murphy said in a statement. "A lot of hard work has gone into this series of upgrades, and we are well-prepared to weather any storms."
KBRA said the upgrade "recognizes the state's return to full actuarial pension contributions in fiscal 2022 following more than two decades of underfunding, as well as the accumulation of record reserves.
However, KBRA said, "these achievements are somewhat offset by the state's issuance of deficit financing bonds to bolster liquidity and balance the fiscal 2021 budget, as well as the role of non-recurring pandemic-related federal aid in the state's improved financial position."
Still, KBRA said, the state has "demonstrated a recent commitment toward restoring and maintaining actuarially sound annual pension contributions and has dedicated budgetary windfalls toward paying down long-term liabilities and bolstering reserves rather than toward recurring spending, which has supported its financial flexibility."
In April, S&P raised the state's GOs to A from A-minus, Fitch upgraded the state to A-plus from A and Moody's raised the GOs to A1 from A2.
"The latest upgrade is further recognition that the work we have put into responsible budgeting, including record pension payments and an unprecedented level of surplus, has been noticed, and we're gratified that the rating agencies have acknowledged these actions," said Treasurer Elizabeth Maher Muoio.
