- Associated Press - Friday, September 5, 2014

TRENTON, N.J. (AP) - New Jersey’s credit rating has been lowered for the second time this year by Wall Street.

Fitch Ratings on Friday dropped the state’s credit rating one step to A. It cited the state’s poor economic performance and Gov. Chris Christie’s plans to fill a budget gap by cutting $2.4 billion from planned pension payments.

A spokesman for the state treasury department says that Fitch’s announcement acknowledges that the state needs to address debt and pension costs. Christopher Santarelli says Christie has emphasized that.

The agency lowered the state’s credit rating in May by citing the state’s use of one-time budget fixes and overly optimistic revenue projections. Friday’s downgrade report noted a resurgence in one-time measures to balance the state’s budget.

A lower credit rating signals caution to investors and results in higher borrowing costs to the state.

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