Atlantic City Debt Rating Upgraded by S&P, Approaching Investment Grade

ATLANTIC CITY, N.J. (AP) — Standard & Poor’s (S&P) Global Ratings has upgraded Atlantic City’s general obligation debt to BB+ from BB, signaling significant progress in the city’s financial management.

Mayor Marty Small Sr. hailed the upgrade as a testament to the city’s progress. “This shows the Great City of Atlantic City is moving in the right direction,” Mayor Small said. “While we aimed for a multi-tier upgrade, we are grateful for the one we received. We thank our local and state budget team for their hard work and S&P for acknowledging our strong leadership and financial decision-making. We are confident the city will achieve investment-grade status much sooner than later.”

The city now stands one step away from achieving investment-grade status. S&P also maintained a positive outlook for the city’s financial trajectory. According to S&P credit analyst Victor Medeiros, the upgrade reflects “continued strengthening of the city’s financial position and management practices.” Medeiros noted that Atlantic City’s stronger operating environment and structural improvements, supported by ongoing state oversight, have enabled the city to produce balanced budgets and maintain liquidity heading into 2025.

Key factors behind the upgrade include:

• Adoption of comprehensive budget planning and monitoring procedures that have fostered structural balance.
• Elimination of outstanding payables and deferred charges, along with building reserves to record-high levels. The city has achieved consecutive current-fund surpluses, with another surplus projected for fiscal 2024.
• Enhanced management policies and practices across various operations.

Atlantic City’s local budget team, which includes Business Administrator Anthony Swan, Chief Financial Officer Toro Aboderin, and City Auditor Leon Costello, works closely with the New Jersey Department of Community Affairs. Under Mayor Small’s administration, the city has lowered taxes for five consecutive years while providing employees with historic raises.

Earlier this year, Moody’s Investors Service also upgraded Atlantic City’s issuer rating to Ba1 from Ba2, maintaining a positive outlook and leaving the city similarly one step from investment-grade status.

The upgrades reflect a broader trend of financial recovery and stability for the city, which continues to strengthen its fiscal foundation under close collaboration with state and local leaders.

Thanks for reading the whole story!

At Atlantic City Focus, we're committed to providing a platform where the diverse voices of our community can be heard, respected, and celebrated. As an independent online news platform, we rely on a unique mix of affordable advertising and the support of readers like you to continue delivering quality, community journalism that matters. Please support the businesses and organizations that support us by clicking on their ads. And by making a tax deductible donation today, you become a catalyst for change helping to amplify the authentic voices that might otherwise go unheard. And every contribution is greatly appreciated. Join us in making a difference—one uplifting story at a time!