Lonegan to Lead Protest of Moody’s Rating of “Junk” New Jersey Contract Bonds

For Immediate Release – July 30, 2008

Contact: Steve Lonegan, (201) 881-6682

MEDIA ADVISORY

Lonegan to Lead Protest of Moody’s Rating of “Junk” New Jersey Contract Bonds, July 31

Group Says Too-High Rating Begs Another Fannie-Freddie Meltdown

WASHINGTON – Americans for Prosperity-New Jersey Director Steve Lonegan will lead taxpayers in a protest against the irresponsible, too-high rating of “junk” New Jersey state bonds by Moody’s Investment Service. The event will be held in front of Moody’s on Greenwich Street in downtown Manhattan tomorrow, July 31 at 1:00 p.m. Lonegan will be joined by a busload of New Jersey taxpayers and a huge, 16-foot-tall ATM machine designed to illustrate that politicians can’t treat taxpayers like an instant cash machine.

Lonegan will deliver a letter to Moody’s Investment Service CEO Raymond W. McDaniel Jr., urging the bond rating company to stop enabling the state of New Jersey in selling “junk” contract bonds that plunge taxpayers further into debt.

When: 1:00 p.m.; July 31

Where: Moody’s Corporation
7 World Trade Center, 250 Greenwich Street
New York, NY 10007

“New Jersey Gov. Jon Corzine has repeatedly told voters that the state is facing a ‘debt crisis,’ yet Moody’s continues to rate contract bonds as if the state of New Jersey has to make good on them,” said Lonegan. “In fact, as I have proven with lawsuits against the state, contract bonds are junk bonds that are not backed by the full faith and credit clause of the New Jersey state constitution. Just like with Fannie Mae and Freddie Mac, Moody’s is assuming paper is good paper without actually looking at what will happen if there is an inability to pay.”

Americans for Prosperity is calling on Moody’s to reverse its high rating of New Jersey’s “junk” contract debt.

Americans for Prosperity (AFP) is a nationwide organization of citizen leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and scope of government is the best safeguard to ensuring individual productivity and prosperity for all Americans. AFP educates and engages citizens in support of restraining state and federal government growth and returning government to its constitutional limits. For more information, visit www.americansforprosperity.org