NJ Covid Bonds (2) Event-Based Disclosures

According to the EMMA website New Jersey is planning to borrow up to $6 billion to keep the lights on.

While waiting for the Preliminary Official Statements, which were “expected to be available on or about November 6, 2020”, the state got around to mentioning the Murphy-downgrade.

11/13/20: Standard & Poor’s Ratings Services (“S&P”) lowered its long-term and underlying ratings on the State’s G.O. Bonds to ‘BBB+’ from ‘A-‘.

Adding to the pile:

11/15/16: Standard & Poor’s Ratings Services (“S&P”) lowered its long-term and underlying ratings on the State’s G.O. Bonds to ‘A-‘ from ‘A’.

3/31/17: Moody’s Investors Service lowered its long-term and underlying ratings on the State’s G.O. Bonds to ‘A3’ from ‘A2’.

4/27/20: Fitch Ratings lowered its long-term and underlying ratings on the State’s…General Obligation (GO) Bonds to ‘A-‘ from ‘A’.

6 responses to this post.

  1. Posted by geo8rge on November 15, 2020 at 9:06 pm

    Worth noting is that S&P, Moody’s and Fitch are paid by the issuer of the bonds. NJ is an issuer of bonds and I am pretty sure NJ pays the 3 rating agencies.

    “Bonds are rated by rating agencies. These agencies get paid by the bond issuer.”
    https://soleraam.com/2019/05/how-do-bond-ratings-agencies-work/

    Reply

  2. Posted by geo8rge on November 16, 2020 at 5:20 pm

    NJ’s ghost of Christmas Future is Illinois. But will Santa Biden leave billions under the tree? Does Santa Biden even exist?

    Gov. J.B. Pritzker warns of widening Illinois budget deficit over next five years without action, says cuts alone won’t be enough

    https://news.yahoo.com/gov-j-b-pritzker-warns-050100745.html

    Reply

    • Posted by Tough Love on November 16, 2020 at 7:56 pm

      I have ZERO sympathy for Ill ………….. change you Constitution to allow MEANINGFUL pension reform, INCLUDING for the future service of all CURRENT workers..

      Reply

    • Posted by Rex the Wonder Dog! 🐶🐶🐶🦴🦴🦴 on November 17, 2020 at 1:48 pm

      But will Santa Biden leave billions under the tree? Does Santa Biden even exist?
      Not HAPPENING.
      #1-If Repugs retain Senate= DOA
      #2- If Dim’s hit 50 seats with GA, STILL not happening.

      These financial con-men/women running these Blue State graft/public employee financial scams are NOT getting bailed out. Why? Because Senators represent an ENTIRE state, not little State voting pockets that can be extreme left or right voters like House members do. To get elected as a Senator you HAVE to represent ALL of the state. There will be enough Dim Senators in big Red & Blue Combo States who will NOT vote a pension bailout for Blue States like IL, CA and NJ. They would never get re-elected. We see the exact same with Repug Senators, they will NOT vote any extreme positions-left or right- in a closely divided state.

      Reply

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