New Jersey’s credit rating hits A+
Writer: Mariana Hernández
August 2025 — The Garden State has reached a financial milestone. Standard & Poor’s Global Ratings has elevated the state’s general obligation bond rating to A+, marking the third upgrade from S&P, and the eighth credit rating upgrade overall under Governor Phil Murphy’s administration. This success provides a welcome boost in the state’s financial reputation, considering it has also been known for its fiscal challenges.
The recognition reflects several positive financial signals: a healthy budget surplus, consistent full pension payments, and stronger fiscal governance. Governor Murphy said that enormous strides were made to turn New Jersey’s fiscal ship around after decades of mismanagement.
“Today’s news of a credit rating upgrade from S&P is a testament to the hard decisions we’ve made to address the high levels of indebtedness that we inherited upon taking office,” said Governor Murphy in a press release. “Although there is much more work to do by the next governor, I’m proud that we’ve done right by taxpayers by tackling longstanding fiscal challenges that stacked up over decades.”
For companies, a higher rating often means lower borrowing costs for the state, which can free up funds for infrastructure, transportation, and other improvements that support economic growth. It also signals financial stability and transparency, reassuring businesses that New Jersey can meet its obligations and maintain a favorable environment for investment and expansion. For entrepreneurs and corporations, this rating provides a sense of stability, an important factor when deciding where to set up operations or future investments.
On a deeper level, the Annual Comprehensive Financial Report (ACFR) by NJCPA reported a fuller picture of the state numbers. While New Jersey’s revenues exceeded its expenses in fiscal year 2024 with $95.6 billion in revenue and $86.6 billion in expenses, the state had been in deep financial distress as one of only three mid-Atlantic/northeast states grappling with a negative net position of $158.7 billion for the primary government, meaning its total liabilities and deferred inflows of resources outweighed its assets and deferred outflows of resources.
As of mid-2024, the state carried $201 billion in long-term governmental obligations and ranked highest in both net pension liability and post-employment liabilities in the region. The state’s Surplus Revenue Fund of $322 million places New Jersey 10th lowest out of 14 neighboring states.
“New Jersey, despite facing significant financial challenges, has always been a great place to do business. Business owners and entrepreneurs here are sophisticated and recognize the need for professional accounting and advisory support,” Paul Fried, CEO of Smolin, told Invest:.
The Garden State’s latest credit rating upgrade is more than a milestone. It’s a clear sign that the state is on a path toward greater fiscal stability and a more competitive business environment. While challenges remain, the improved rating reflects the state’s commitment to strengthening financial foundations for investors, companies, and residents. New Jersey’s business sophistication, diverse economy, and entrepreneurial spirit remain strong, and with disciplined fiscal management and continued investment, the state is positioning itself as an attractive option for years to come.
For more information visit:
https://www.spglobal.com/en
