Atlantic City Has $12.8M Debt Due Tuesday; Lenders Wary

Just how wary lenders are of Atlantic City’s credit is evident in their recent demands as the city tries to refinance $12.8 million in debt due Tuesday.

Three lenders expressed interest in making the loan, but one wanted to charge 12 percent interest. Another was willing to lend at a lower rate but wanted a state guarantee, which the state rejected, Mayor Don Guardian said Saturday.

Talks continued with a third prospective lender, and a decision is expected Monday, Guardian said, adding: “We are prepared to make the payment regardless.”

The financial turmoil in Atlantic City, half of whose gambling revenue has disappeared since 2006, has intensified in the last year, as four of 12 casinos have closed, and 8,000 people have lost their jobs.

Read more at http://www.philly.com/philly/news/new_jersey/20150202_Atlantic_City_must_refi__12_8M_debt_due_Tuesday__lenders_are_wary.html#ko1yGKWcfBpViIB0.99

Atlantic City’s Credit Rating Is Downgraded

Trump Taj Mahal, 2007 (Photo credit: Wikipedia)

ATLANTIC CITY – Standard & Poor’s downgraded Atlantic City’s credit rating from A-minus to BBB-plus on Monday, citing mainly the closing of four of 12 casinos this year.

The downgrade, which includes a negative outlook for the city, comes as Atlantic City is struggling with the loss of tax revenue because of the closures.

Combined, the shuttered gambling halls – Atlantic Club, Showboat, Revel and Trump Plaza, which closed last Tuesday – generated about $75 million in property tax revenue last year. A fifth – Trump Taj Mahal – may close in November.

Read more at http://www.philly.com/philly/business/20140923_JERSEY_SHORE.html#8By6Www9h9YC1lJB.99

Moody’s Upgrades Pittsburgh’s Bond Credit Rating

A map of Pittsburgh, Pennsylvania with its neighborhoods labeled. For use primarily in the list of Pittsburgh neighborhoods. (Photo credit: Wikipedia)

Moody’s Investors Service upgraded Pittsburgh’s bond rating outlook from stable to positive Thursday, which Mayor Bill Peduto called a sign of improved financial health.

“The positive outlook reflects the steps the city has taken to reduce its long-term liabilities,” Moody’s wrote.

Along with the outlook upgrade, Moody’s affirmed its A1 rating on approximately $530 million in outstanding general obligation debt.

Standard & Poor’s ratings agency this week announced it is maintaining the city’s A+ bond rating, city officials said.

Read more: http://triblive.com/news/allegheny/6582680-74/peduto-plan-rating#ixzz39oyVSUz9
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Allegheny County Receives Upgraded Credit Rating

Map of Pennsylvania highlighting Allegheny County (Photo credit: Wikipedia)

Allegheny County’s credit score has gotten another boost.

Financial rating agency Standard & Poor’s issued a news release Monday saying that it was upgrading the county’s long-term rating by one step, from an A+ to AA-.

The upgrade gives Allegheny County its highest rating in nearly 12 years, the county announced today in a news release.

“This is great news for Allegheny County and really reflects that we are heading in the right direction and making headway in improving our financial outlook,” County Executive Rich Fitzgerald said in a statement. “I am really proud of the job we have done in improving the fund balance, having an end-of-year cash balance, reducing reliance on one-time revenues for our budget and working cooperatively to address the issues that have impacted our bottom line.”

Read more: http://www.post-gazette.com/business/2014/01/28/Allegheny-County-receives-upgraded-credit-rating/stories/201401280148#ixzz2rjtZjmzr

Fitch Ratings Keeps US At Top ‘AAA’ Credit Rating

WASHINGTON — Fitch Ratings has retained the U.S. at its top ‘AAA‘ credit rating but also left the outlook negative, citing the failure of Congress and the Obama administration to forge an agreement on reducing the budget deficit.

Fitch says that uncertainty over federal tax and spending policies related to the so-called fiscal cliff “weighs on the near-term economic outlook” and raises the prospect of another recession.

A massive budget showdown could begin after the elections in November and stretch well into next year, despite the threat of the fiscal cliff – $500 billion in impending tax increases and spending cuts.

Fitch also says the burden of government debt on the economy will continue to rise and could hurt growth if an agreement isn’t reached on the deficit.

Read more here:http://www.centredaily.com/2012/07/10/3257350/fitch-ratings-keeps-us-at-top.html#storylink=cpy