The Garden State’s hot streak with credit ratings agencies continued April 10 when Fitch Ratings raised the state’s issuer rating from A to A+, just days after Moody’s Investors Services elevated the state’s general obligation bond rating.

Monday’s credit rating upgrade is the second from Fitch in the past seven months and marks New Jersey’s fifth increase from all agencies in just over a year.

In its rationale for boosting the rating, Fitch cited the state’s recent full pension payment and the focus on reducing the state’s bonded debt through the Debt Defeasance and Avoidance fund.

“The upgrade of the IDR (Issuer Default Rating) to ‘A+’/Stable from ‘A’/Positive reflects Fitch’s view that New Jersey has effectively used the fiscal momentum of recent years to accelerate progress on its long-term fiscal and liability challenges,” Fitch said in its release. “Solid economic performances matched by robust revenue growth have helped New Jersey to shrink its liabilities. Despite recent improvements, high liabilities and elevated carrying costs are likely to remain a longer-term constraint on its budget choices. Although the durability of recent fiscal improvements remains untested, New Jersey’s credit quality will continue to benefit from inherent strengths including its very high wealth and the broad budget management prerogatives common to states.”

Fitch also noted the record surplus in New Jersey’s most recent state budget, with another proposed in the Fiscal Year 2024 spending plan.

“New Jersey has established strong gap-closing capacity based on robust economic and revenue growth in recent years combined with policy actions to build year-end balance,” Fitch said.

“Like Moody’s just a few days ago, Fitch has recognized our focus on paying our obligations as we go,” said Gov. Phil Murphy in a press release. “By making the full pension payment for the third year in a row and dedicating more money to reducing our debt, we have signaled that the days of ignoring our long-term commitments in favor of short-term benefits are over.”

“With our fifth rating upgrade in just over a year, the ratings agencies have signaled that New Jersey is back on a steady financial course,” said Treasurer Elizabeth Maher Muoio. “It’s more clear than ever that the moves we’ve made to pay down our debt, increase our surplus, and make our required pension payments are paying off.”

“Similar to many states, New Jersey’s finances since the pandemic struck have been remarkably resilient relative to earlier forecasts, supported by a rapid economic rebound, federal economic stimulus and pandemic aid, state balancing actions and tax collections well beyond earlier forecasts,” Fitch said. “New Jersey had been making slow but steady progress in addressing multiple fiscal and liability challenges before the pandemic, but the surge in revenues during the pandemic recovery has enabled it to accelerate improvements, particularly lowering its long-term liability burden and building a budgetary cushion.”