The issuer rating is equivalent to the city’s hypothetical general obligation unlimited tax, or GOULT, rating. Although the city has $315.9 million in GOULT debt, none of it is has an underlying rating from Moody’s, though much of it carries an A3 enhanced rating from the New Jersey Municipal Qualified Bond Program.
The positive outlook reflects expectations that, despite the lingering effects of the pandemic, the rise of inflation and the risk of recession, Atlantic City will continue making strides in improving its governance and finances.
While the economic headwinds have caused issues, the negative credit consequences are offset by the improved management of city operations and the more predictable payment in lieu of taxes, or PILOT, payment structure for casinos.
The outlook also incorporates the continued state oversight.