Saturday, January 24, 2015

Atlantic City Receives Downgrade On Bonds

The appointment Thursday of an emergency
management team to oversee Atlantic City’s government has already had its first effects on the city.

On Friday, Moody’s Investors Service downgraded Atlantic City’s general obligation debt to Caa1, with a negative outlook, from Ba1.
Moody’s rates obligations based on their quality, and therefore their credit risk. Ratings start at “Aaa,” the highest rating, and move to a “C” rating, which is the lowest-quality rating.

“It’s of grave concern to the city,” said Atlantic City Revenue and Finance Director Michael Stinson. “It means our cost of borrowing goes up.”

 An immediate concern of the city is that it has a short-term note due Feb. 1 that it plans to “roll over,” Stinson said. The downgrade will impact the sale of that note.

Entire story at
 http://www.pressofatlanticcity.com/communities/atlantic-city_pleasantville_brigantine/appointment-of-emergency-manager-prompts-downgrade-of-a-c-debt/article_df9978b4-a348-11e4-8e2c-2bc303d43550.html

AC Residents Skeptical About Emergency Manager
 Story at
 http://www.pressofatlanticcity.com/news/a-c-residents-skeptical-about-emergency-manager/article_294bcf00-a350-11e4-87d6-bb865769993a.html

No comments: