Will New Jersey Need Lap Band Surgery? Credit Rating Cut Record Ninth Time

Moody's Investors Service has downgraded New Jersey's debt rating  for a record ninth ratings cut. All have occurred since Gov. Chris Christie took office.

The ratings drop by one notch, from A1 to A2, on $32.2 billion worth of bonds underscores the state's "weak financial position and large structural imbalance, primarily related to continued pension contribution shortfalls," Moody's said in a statement Thursday.

The rating agency warned that future pension underfunding and ongoing structural deficits could drive further downgrades.

"We expect liquidity and structural balance to remain very weak through fiscal 2016," the agency said.

"Without meaningful structural changes to the state's budget, such as pension reform that dramatically improves pension affordability, the state's structural imbalance will continue to grow, and the state's rating will continue to fall," a Moody's credit analyst said in the statement.