Fallen Boardwalk Empire
Atlantic City turns to junk:
Moody's Investors Service downgraded the general obligation bonds of Atlantic City, New Jersey to "junk" status on Wednesday, citing the struggling casino town's declining tax base.Whither the casinos?
The credit rating service cut the city's underlying rating to "Ba1" from "Baa2." It affects $245 million in outstanding debt.
"The downgrade to Ba1 reflects the city's significantly weakened tax base, revenue-raising ability, and broader economic outlook," Moody's said in a statement, adding that its outlook remained negative.