S&P Global Ratings has cut its credit grade for New Jersey's general-obligation bonds a notch, to A-.

"State budget pressures will intensify in future years," noted S&P Global Ratings credit analyst David Hitchcock, in a statement explaining the rating cut.

Putting aside New Jersey's large pension expenses and the risk the economy could slow and tax collections fall, New Jersey's "revenue growth has not kept pace with rising costs," according to analyst Hitchcock.