Posts Tagged ‘moody’s’

Christie: Downgrades “a great referendum on my fiscal policies”

When Chris Christie came into office in 2010 New Jersey’s bond ratings were AA with Fitch, AA2 with Moody’s and AA with S&P (the third highest for all three agencies and, as best I can tell, the same ratings New Jersey long-term bonds had since the last round of McGreevey downgrades in 2002).

That same year of 2010 New Jersey municipalities led the nation in bond-rating downgrades and, according to one story, Christie could not have been more pleased:

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Moodier Pension Numbers

Moody’s released a report yesterday where they took two year old data on state public pension plans and revised their numbers to take into account (a) market instead of ‘actuarial’ value of assets and (b) an interest rate for liabilities of around 5.5% instead of 8%.  The headline was that funded ratios were not 74%, as officially reported, but 48%.

Overall a welcome report with much useful information yet the real picture is murkier due to:

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“Sore Loser” With “Limited Credibility”

That’s what a group of 70 Public Plan actuaries* at this month’s EA meeting view was of Moody’s and their revised rating methodology for US states as it relates to valuing unfunded pension liabilities:

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