Moody's Downgrades Atlantic City Over Poor Gaming Revenue

Law360, New York (November 21, 2013, 4:49 PM EST) -- Moody's Investor Service has downgraded Atlantic City's rating to Baa2 from Baa1 because of the city's reduced tax base and weak casino revenues, the ratings agency said Tuesday.

The city, which as been recently battered by superstorms and bad financial outlooks, is $219 million in debt and the outlook remains negative on ability to repay, the ratings agency said. The city's biggest challenges stem from casino tax appeals spurred by increased competition from casinos in neighboring states. The gaming industry pays nearly 70 percent of the...
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