Thursday, August 18, 2011

Fitch Downgrades New Jersey Debt Rating

Fitch Lowers New Jersey Credit Rating to AA- From AA ~ NYTimes 

Why Asbury Radio should care:
Asbury Park's debt rating is linked to the State's financial health and rating status. Moody's rating procedure takes into account the State's oversight and its own status, especially since Asbury Park is directly dependent on the State for millions of dollars in annual support - aid to cities in need, aid to dependent cities, or temporary aid to dependent cities. Whatever they're calling the money we get from the State this year, the charity is scheduled to stop. This year's $10.5 million is largely seen as the last handout of its kind the city is going to get. In light of today's downgrade, that is practically a certainty. When Asbury Park goes to market for another bond issue, or to roll over its debt, it'll need another rating from one of the three agencies. That rating is how lenders - largely muni bond buyers - decide how much interest they should earn on the bonds. Bond interest rises with the amount of risk the buyer is accepting.
Related articles:
SEC charges N.J. for fraudulent municipal bond offerings
See also directory on this site...

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