Sure, Amazon would be great, but there are other signs Newark's on the rise

For a long-blighted city that has suffered for its reputation, any shift in perception -- and confidence -- can be a game changer.

The latest news that mega-retailer Amazon picked Newark as a top 20 finalist for its second headquarters is bolstering the city's hope that steady investment and growth could stick around. 

Citing ongoing redevelopment efforts, Moody's Investors Service this month also revised Newark's outlook from negative to positive -- meaning the city's low investment grade rating could get an upgrade in the next year or two.

"What it shows is that the turnaround is underway," Marc Pfeiffer, assistant director of the Bloustein Local Government Research Center at Rutgers said. "People are seeing, we've got potential here."

The back-to-back headlines are some of the latest signs that trust in the city's finances is building, and its assets are being recognized. But how much future investments will benefit Newarkers in terms of creating new jobs and opportunity is yet to be seen. 

Among the more recent nods to Newark's financial improvements:

Mayor Ras Baraka said the Moody's change marked the first time in eight years that the city received a positive outlook on its credit rating.

Baraka called it "a confirmation of our progress in restoring the city's financial health."

"It also reflects our success in offering business-stimulating abatements that are financially advantageous to the city and the fact that we have been able to end the practice of borrowing to meet current expenses," he said in a statement.

Newark's current rating remains a Baa3, the lowest investment grade rating issued by Moody's -- right above junk bond status. Newark's creditworthiness is a sign for bond holders on how likely the city is to pay back its bonds with interest, similar to a credit score when people take out mortgages or loans. A higher score means less risk in the city's ability to pay back its debt. 

Moody's said Newark's push to bring a mix of affordable and market rate housing to the city, expand parks and clear blighted areas will increase the tax base and spur further growth. The city has had two years of growth for the first time since the recession, ending 2017 with a tax base of about $16 billion, Moody's report said.

That could prompt a rating upgrade in the next 12-24 months.