New Jersey downgraded by Moody's.

• Position: News Briefs

Citing depressed income tax revenues that have contributed to a looming $2.5 billion budget deficit, Moody's downgraded $14 billion of New Jersey debt in early March. The action included the lowering of $3.5 billion of the stare's general obligation bonds from Aa1 to Aa2. Analysts said the state is heavily dependent on income taxes derived from the fortunes of Wall Street. Income tax receipts for December and January were $700 million under projection, thanks mostly to the poor performance of the stock market. Although New Jersey Governor...