May 1 (Bloomberg) — New Jersey's credit rating was lowered one step by Fitch Ratings, which cited an $807 million revenue shortfall and Governor Chris Christie's likely use of one-time measures to plug the gap.
The firm lowered the state's general obligation debt to A+, saying revenue forecasts were "overly optimistic." Fitch also expressed concern over "both the scale and belatedness" of the shortfall, with two months left in the fiscal year. A+ is the fifth-highest investment grade and Fitch maintained a negative outlook on the state's credit.
The move affects $2.4 billion in general obligation bonds and Fitch also cut its ratings on $32 billion in other debt. It marked the second time the ratings company has lowered New Jersey since Christie took office in January 2010. Standard & Poor's cut New Jersey's rating twice and Moody's Investors Service has also lowered its ranking.
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