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Moody's has increased Jersey City's credit rating for a second time.

(Jersey Journal file photo)

Jersey City is getting bigger and Moody's has noticed.

The credit-rating service, citing the city's growing tax base, growing economy and "improved management policies," has increased the credit rating of Jersey City's General Obligation (GO) debt.

The rating from A1 (above-average credit-worthiness) to Aa3 (very strong credit-worthiness), marking the third consecutive credit rating increase under Mayor Steve Fulop's administration and the second such move by Moody's.

"From the very beginning, we've taken a forward-looking approach to fiscal planning, focusing on making Jersey City more fiscally sound, while investing in public safety, new parks, increased recreation, and other quality-of-life issues - all without raising taxes," Fulop said.

"Receiving yet another credit rating upgrade is strong validation that we are on the right track, but there is always more work to do and my administration remains focused on moving Jersey City forward."

Moody's report cites Fulop's fiscal management policy as an important factor in the city's improving financial position.

The policy implements a range of best practices, from budget targets to three-year projections of costs and revenues; and it has allowed the city keep taxes flat for three years, city officials said. Fulop has also consolidated departments and agencies to reduce costs and remove redundant services.

City officials also credit pro-growth policies such as streamlining the permitting process, partnering with local businesses to revitalize commercial corridors, and opening the Office of Small Business to support existing and aspiring entrepreneurs.

Unemployment has dropped more than one-third since Fulop took office, and more than 450 new small businesses have opened and more than 5,600 jobs have been created, city officials said.

"This is great news for Jersey City and particularly for small businesses and corporations looking to move to Jersey City, as it signals consistent economic growth and strong fiscal management," said Maria Nieves, president and CEO of the Hudson County Chamber of Commerce.

"We have seen the progress taking place in Jersey City, with development and new businesses opening in areas like Journal Square, the Heights and Bergen-Lafayette, and this well help provide additional confidence for more businesses, which means more services and more local jobs."

Moody's first upgraded Jersey City's credit rating in November 2014 followed by an upgrade from S&P earlier this year.