Standard and Poor’s Global Ratings has raised its long-term rating and underlying rating on the City of Atlantic City’s general obligation debt to BB+ from BB, putting Atlantic City one upgrade away from investment grade.
S&P also kept Atlantic City in a positive outlook.
“The upgrade reflects continued strengthening of the city’s financial position and management practices,” to S&P Global Ratings Credit Analyst Victor Medeiros said.
The report from S&P goes on to say that the positive outlook reflects Atlantic City’s stronger operating environment and structural improvement, along with ongoing state oversight.
Other reasons for Atlantic City’s upgrade, according to the report, include:
- The adoption of robust budget planning and monitoring procedures that have enabled structural balance.
- The city eliminated all its outstanding payables and deferred charges and improved reserves to the highest level ever.
- Management policies and practices affecting operations have improved in several areas.
“Once again, this shows the Great City of Atlantic City is moving in the right direction. Because of our competitive nature, we were seeking a multi-tier upgrade, but we are more than grateful for the one we received,” City of Atlantic City Mayor Marty Small, Sr. said.
