Moody’s upgrades Jersey City’s bond rating to A1

JERSEY CITY — The financial investor’s service firm Moody’s has upgraded Jersey City’s municipal bond rating to A1 in a report issued on Nov. 12.
“This year we worked to expand the tax base, encourage the growth of our business community, and lower property taxes for our residents,” said Mayor Steven Fulop. “But our fiscal planning has also focused on the long-term, specifically how we can create structurally sound operations, reduce debt service, and generate revenue. We are making Jersey City more fiscally sound while at the same time hiring police officers and firefighters, renovating parks and increasing recreational programming, and improving city infrastructure.”
According to the report issued by Moody’s, the service has assigned an A1 rating with a stable outlook to Jersey City’s $34.7 million General Obligation Bonds, Series 2014. Concurrently, Moody’s has upgraded Jersey City’s underlying general obligation rating to A1 with a stable outlook from A2 with a positive outlook, affecting $833 million of city and city-guaranteed long-term general obligation bonds.
Moody’s credited Jersey City with having an improved local economy with rising home values, income levels and PILOTS; borrowable liquidity outside of the current fund; a declining debt structure after 2016; and excess levy capacity under the 2 percent property tax levy cap. While Jersey City was upgraded, other large cities in New Jersey, as well as the State of New Jersey, have seen repeated downgrades from Moody’s.
“Jersey City, with its substantial $19.7 billion equalized value in 2014 (up from $17.7 billion in 2012), boasts the largest municipal tax base in the state,” reads the report.