US Economy

S&P downgrades New Jersey, says state is still struggling

Standard & Poor's downgraded the state of New Jersey on Wednesday, saying it had structurally unbalanced budgets and a habit of using one-time measures that will increase fiscal problems down the road.

The downgrade makes New Jersey the third-lowest rated state in the country by S&P, trailing only Illinois and California.

S&P cut the state's general obligation debt to "A+" from "AA-" with a stable outlook.

"Almost five years after the official start of the economic recovery, New Jersey continues to struggle with structural imbalance and stands in stark difference to many of its peers who registered sizeable budgetary surpluses in fiscal 2013," the ratings service said in a statement.

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