Office of the State Treasurer

TRENTON -- State Treasurer Bradley Abelow today released the following statement after all three rating agencies this week affirmed their current ratings of New Jersey General Obligation debt at “AA” (Standard and Poor’s); “AA3” (Moody’s)  and

“AA–“(Fitch’s):

“We are encouraged by all three rating agencies’ assessments of New Jersey’s efforts to restore stability and structural balance to state finances The rating agencies all take special note of the Corzine Administration’s progress, acknowledging the second straight year of reduced reliance on non-recurring revenues, as well as commending our steps to address previously deferred pension funding obligations.

“While more work needs to be done to close the structural budget gap, New Jersey is clearly taking large steps in the right direction.”

Selected excerpts from this week’s rating reports:

“The state's fiscal 2007 adopted budget has made significant strides toward structural balance, and Standard & Poor's will continue to view the adoption of future budgets that further this effort and would improve financial performance as a positive credit factor.”

--S and P, Aug 2, 2006

“Actions taken to balance the fiscal 2007 budget constitute a major shift in fiscal policy toward fully funding the state's current budgetary obligations, with the administration also focused on addressing the state's long term fiscal issues and improving the state's credit rating.”

– Moody’s, Aug. 4, 2006

“Decisive actions in the state's fiscal 2007 budget lay the foundation for financial strengthening. These measures include tax increases and reduction by half in the use of non-recurring resources to 3.3% of revenues.”

– Fitch’s Aug 4, 2006