Atlantic City Downgraded to BBB+ on Casino Closings

 

Bloomberg contains an article about the downgrade by S&P of Atlantic City general obligation debt to BBB+ from AA-.  On July 23, Moody’s assigned a rating of Ba1 which is considered junk.

S&P state, “The downgrade and negative outlook reflect our opinion of the revenue and potential liquidity pressures that the city faces following the closing of four of its twelve casinos, two of which are in bankruptcy,”

Bloomberg article