ATLANTIC CITY, NJ — Atlantic City’s financial standing continues to strengthen, highlighted by a recent investment-grade credit rating upgrade from Moody’s Ratings, the city’s first in more than a decade and a key milestone in its long recovery from from fiscal distress.
Moody’s upgraded the city’s issuer rating to Baa3, citing improved budget management, significant debt reduction and sustained state support. City officials said Atlantic City has reduced its outstanding debt to roughly $228 million, down from more than $500 million a decade ago, easing long-term financial pressure and improving its standing with investors.
“This is a vote of confidence in Atlantic City’s financial future,” Mayor Marty Small Sr. said in a statement following the upgrade. “We’ve made tough decisions, stayed disciplined and focused on stabilizing our finances while continuing to invest in our neighborhoods.”
The improved outlook extends beyond City Hall. Moody’s also raised the credit rating of the Atlantic City Municipal Utilities Authority, a move officials say will help lower borrowing costs for infrastructure projects and reflect broader fiscal stability across city-related agencies.
State support has played a major role in Atlantic City’s turnaround. Since 2016, New Jersey has provided hundreds of millions of dollars in financial assistance to help stabilize the city’s budget, reduce debt and limit property-tax increases. Atlantic City remains under state fiscal oversight, though recent upgrades have renewed discussion about gradually restoring more local control.
“Atlantic City is in a far better position today than it was several years ago,” Moody’s analysts wrote, pointing to improved liquidity and governance as key factors in the upgrade.
Despite the positive momentum, challenges remain. Casino revenue — still a cornerstone of the local economy — has remained relatively flat, even as online gaming grows and in-person visitation fluctuates. City leaders say diversification efforts, including infrastructure improvements, sports tourism and business development initiatives, are critical to long-term stability.
Economic development projects, including road repaving, facility upgrades and major events like the MAAC basketball championships, are aimed at driving year-round activity and strengthening the tax base.
“We’re not declaring victory,” Small said. “But the progress is real, and it shows that Atlantic City is moving in the right direction.”
For residents and investors alike, the message from credit agencies is clear: Atlantic City’s finances are more stable than they’ve been in years, even as officials continue working to secure sustainable growth.
Atlantic City Financial Recovery: A Timeline
2014–2015
Atlantic City faces severe financial distress as multiple casinos close, shrinking the tax base and pushing city debt above $500 million.
2016
New Jersey intervenes under the Municipal Stabilization and Recovery Act, placing Atlantic City under state fiscal oversight and providing emergency financial aid to prevent bankruptcy.
2017–2019
The city restructures debt, stabilizes annual budgets and begins receiving recurring state support to offset casino tax appeals and operating deficits.
2020–2021
Despite pandemic-related disruptions, Atlantic City maintains budget stability. State aid continues, and long-term debt reduction efforts remain on track.
2022–2024
The city steadily reduces outstanding debt, improves cash reserves and strengthens financial controls. Credit agencies begin signaling improved outlooks.
January 2026
Moody’s Ratings upgrades Atlantic City to investment-grade status (Baa3) for the first time in more than a decade, citing debt reduction, improved governance and sustained state backing.
2026 and Beyond
City debt stands at approximately $228 million, less than half its peak level. Officials focus on infrastructure investment, sports tourism, and economic diversification as Atlantic City works toward long-term fiscal independence and eventual easing of state oversight.
