Atlantic City Cut Three Steps by S&P, Citing Lack of Debt Plan
ByAtlantic City had its debt rating cut deeper into junk by Standard & Poor’s, which said the New Jersey gaming hub has no “clear plan” to address its fiscal woes.
The municipality, which has been run by an emergency manager since January, was reduced three steps to B, the fifth level into junk, and may be lowered further, the ratings company said Monday.
Since Emergency Manager Kevin Lavin released a report in March citing the potential for deferred debt payments and job cuts, there has been no “additional clarity” on how the city can address its $101 million budget deficit and eroding tax base, Timothy Little, an S&P analyst, wrote in a release.
“The lack of clear and implementable reforms to restore fiscal solvency without payment deferrals or debt restructuring remains uncertain as the city continues to operate in a difficult fiscal environment,” he said in the statement…
Atlantic City Cut Three Steps by S&P, Citing Lack of Debt Plan
