The Standard & Poor’s rating agency has raised Atlantic City’s general obligation bonds two notches, from B to BB-minus; it cited improved budget conditions and continued state supervision of the resort city’s finances for the upgrade — which should have a positive effect on AC’s general obligation debt.
“We believe Atlantic City is poised to maintain and continue to improve financial performance, increase reserves levels, and improve liquidity,” according to S&P. “In our opinion, it should be able to withstand a modest level of stress and meet its financial obligations — particularly as it remains under state oversight.”
The state Department of Community Affairs and Atlantic City officials were quick to call attention to the upgrade, and especially to S&P’s positive outlook for the city. “This positive outlook demonstrates the steady progress that DCA and city officials are collaboratively making to improve the City’s fiscal health and its ability to appropriately manage its budget,” said Lt. Governor Sheila Oliver, who serves as DCA commissioner. Atlantic City Mayor Marty Small said, “The great news will continue to instill investor confidence in our city as we work towards the ultimate goal of providing long-lasting tax relief for our taxpayers.”